By Claire West
Following the publication of figures relating to the number of people receiving redress due to the mis-selling of complex financial products John Allan, National Chairman, Federation of Small Businesses, said:
“The FSB has been fighting for fair redress since the problem of mis-selling complex financial products to 30,000 small firms came to light well over a year ago. Finally, the FCA has laid bare depressing figures which show that after five months only ten businesses out of over 15,000 currently in the process have been offered compensation. What makes this even more disappointing is that 1,300 firms who should be offered redress straight away are still stranded in this inept compensation scheme.
“We are quickly losing confidence in the banks and the regulator as this scheme remains unbelievably slow. The regulator initially indicated the redress scheme would take six months to complete — a timetable that has clearly been missed by a large margin. We warned that if the process isn’t quick and fair it would risk litigious claims, and further undermine confidence between small firms and the banks. The protracted nature of the redress scheme can only further harm those businesses who are victims of mis-selling and hinder efforts to increase confidence in the high street banks, underlining the need for the regulator to get a grip and get this matter resolved once and for all.”