MPs have hit out a delays in sorting out compensation for small- and medium-sized businesses, such as farms, which were mis-sold complex interest rate products.
Bankbenchers discussed the issue during a debate in the House of Commons last Thursday (24 Oct), which was called by Welsh Conservative MP Guto Bebb (Aberconwy).
Mr Bebb said the lack of progress made by the Financial Conduct Authority and the banks on the redress scheme adopted as a result of the mis-selling was proving costly and causing distress to the businesses involved.
Labour MP Natascha Engel (North East Debyshire) said it was an “absolute scandal” that 30,000 businesses or individuals were waiting for some kind of redress and only 32 have had redress.
The Farmers Union of Wales (FUW) welcomed the support shown by MPs during the debate.
FUW business development director Emyr James said: “We are supporting a number of FUW members who have fallen victim to swap loans for their various farming enterprises, which have included land purchases, and any other members still concerned about this issue can contact me in confidence.
“By now they are thoroughly frustrated at the lack of progress by the banks and FCA in their efforts to seek redress so we were very pleased to hear this issue has at last been the subject of a Commons debate led by Mr Bebb, who we have been working with over the past year.
“Mr Bebb took up the issue as far back as November 2011 when one of his constituents went to his surgery to complain that he had been ‘mis-sold’ a complex financial product called an ‘interest rate swap’.
“The constituent claimed not to have understood what he was agreeing to when he was forced to take out this ‘swap’ as a means of securing a bank loan. Following his enquiries into the matter over the past year Mr Bebb found that many of these complicated and costly products have been sold to farmers.”