Promoting access to justice – Small firms v Big banks
The All Party Parliamentary Group on Fair Business Banking has recently announced the need for a new tribunal system to be implemented in order for small firms to challenge big banks.
Currently, small firms that have suffered at the hands of big banks have two, potentially three options:
- Follow the Bank’s internal complaints process, especially if there has been a specific one set up for the purposes of the issue (i.e. Lloyd’s review for HBOS claims and RBS’ GRG Complaints process);
- Complain to the Financial Ombudsman Service, although there are limits on eligibility and likely awards made; or
- Proceed with litigation which can be inherently expensive and time-consuming.
It has been suggested that, similar to the Employment Tribunal, a “gap-filling” tribunal system be implemented. The aim would be for the tribunal to be funded by a levy applied to financial services firms.
Kevin Hollinrake, chair of the Parliamentary Group, has stated that there is a “systematic failure”, and that “many of those firms that have suffered from mistreatment and malpractice (have been) denied access to justice”.
A new system of recourse could only be positive for small firms seeking to pursue their claims and will increase access to justice whilst promoting the rights of small corporations, even when confronted with much larger ones.
It has also been suggested that implementing a one way costs recovery system, whereby banks would be unable to recover costs which could lead a small firm to insolvency, would further promote access to justice.
How can Ellis Jones help you?
If you believe that you have been negatively affected by a bank, or a financial services provider, or indeed HBOS or RBS’ GRG, please do not hesitate to contact our Solicitors. We have substantial experience in dealing with claims in this area and we have recovered in excess of £50 million from UK Banks for our clients. We may also act on a No Win No Fee basis, subject to eligibility and initial assessment of your claim.
Please contact William Fox Bregman, Partner and Head of Banking and Finance Litigation on 01202 057740 or send an email enquiry to discuss your claim.