Small businesses 'unhappy with banking process'

10 December 2012

Smaller businesses in the UK want the process of swapping interest rates to become faster and more transparent.

That is according to the Federation of Small Businesses (FSB) and Bully Banks, groups that will hold a meeting with the Financial Services Authority (FSA) later this week with the intention of lobbying for reforms in this area, the Independent reports.

At present, such companies feel they are treated unfairly as banks impose significant fees on them when they attempt to carry out this process.

Indeed, Bully Banks - a small business representative group - believes that thousands of firms across the country are being pushed towards insolvency because of the FSA's delays in creating an effective compensation scheme.

Mike Cherry, national policy chairman of the FSB, said the regulatory body has "continued to ignore our calls to have this process overseen independently with full transparency".

"We are six months into the pilot and we have very little detail on what is happening," he added.

By Tony Aynsley

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