By Vicki Owen For The Mail On Sunday Published: 16:51 EDT, 28 January 2017 | Updated: 05:18 EDT, 29 January 2017 Banks are to face a fresh inquiry into how they manage rows with businesses, with MPs calling for a dedicated dispute service to settle claims of unfair treatment before they become scandals. The inquiry will be launched on Monday by two all-party groups of MPs – the fair business banking group and alternative dispute resolution group. The probe follows a string of scandals surrounding banks’ treatment of businesses, including the mis-selling of complex financial products and allegations that Royal Bank of Scotland pushed some firms into administration in order to buy up their assets. Inquiry: Banks are to face a fresh inquiry into how they manage rows with businesses Many disputes fall outside the scope of the Financial Ombudsman Service, which typically deals with personal finance issues, but are not large enough to make a legal claim economically viable for firms. The inquiry will present ‘a suite of recommendations that can be adopted on a voluntary and statutory level’, MPs said. It might result in a Financial Tribunal to handle disputes. The roles of the Small Business Commissioner and the Financial Ombudsman will also be examined. Chairman of the fair business banking group George Kerevan said that mis-selling and the lack of resolution had ‘carried on to a lack of investment in new businesses’, and was a factor in important entrepreneurs withdrawing from the business process. Advertisement Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.
the United Kingdom in the Financial Ombudsman are launching an inquiry into how banks handle disagreements with smaller businesses. two all-party groups, the fair business banking group and the alternative dispute resolution group, will manage the inquiry, following several scandals involving banks, including the mis-selling of complex financial products. The groups will also examine the roles of Financial Tribunal and the Financial Ombudsman , and it has been suggested a the Small Business Commissioner may be created to deal with disputes.