Business Banking Resolution Service set to fail?
The Business Banking Resolution Service (BBRS) has announced that the Centre for Effective Dispute Resolution (CEDR) will run the banking dispute cases put in front of it. The BBRS was set up to look at banking disputes between SME's and banks that were not eligible to go to the Financial Ombudsman Service (FoS).
No disrespect to CEDR (who are undoubtedly a professional body), but what does it know about the regulatory framework of banking, the codes and the law? Yes, CEDR can opine on what it sees as being fair and acceptable, but most banking disputes spin on regulations and the law. Our experience has shown that banks have been adept at tying knots around disputes, by hoodwinking dispute resoluters by retaining documents and information, and by adopting bulltying and delay tactics.
The Walker Report (which was behind BBRS) recognised that most SMEs didn't have access to litigation, due to the costs of launching a claim against banks.
We hold our breath, but its seems unlikely that CEDR and therefore BBRS will have the teeth to take the banks to task.
Expert Witness, forensic valuations, Treasury and ALM advisory, services to the legal profession and central banks.
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