Bully Banks - Protecting The Future Of Banking
- To enable SMEs to obtain redress for the mis-conduct of their banks
- To change the conduct of banks in their dealings with SMEs
Bully-Banks was created in December 2011 by a small group of business owners in the UK each of whom had been mis-sold an Interest Rate Hedging Products (“an IRHP”) by their bank.
Bully-Banks’ objective was to co-ordinate complaints by the owners of small and medium sized business in the UK against the conduct of their banks when selling IRHPs.
As of the end of August 2014 Bully-Banks is a not-for-profit campaign group representing over five thousand businesspeople across the UK. They are the owners of over 2000 small and medium sized businesses, each of which has been adversely affected by the misconduct of their bank.
Bully-Banks’ operating company is Ordinary People in Business Ltd which has no shareholders, being limited by guarantee. Its Board of Directors is made up of businesspeople who have been mis-sold financial products by their banks.
Bully-Banks’ campaign has prompted:
- Significant media focus upon the mis-sale of IRHPs to SMEs by their banks and building societies
- The creation of the All Party Political Group on the Mis-sale of IRHPs which now has a membership of over 110 UK MPs
- Three debates in the UK Parliament
- The establishment of the FCA Review and Redress Scheme which has required to banks to pay redress of over £1 billion
- The Treasury Select Committee’s SME Lending Inquiry to include fixed-interest business loans (“Hidden Swaps”)
Our continuing fight
The issues now being raised by Bully-Banks in Parliament, in the media and with the Regulators include the following:
- The shortcomings of the FCA Review with particular regard to:
- the exclusion of sophisticated customers
- the failure of banks to accept Consequential Loss claims
- unacceptable swap-for-a-swap decisions
- insolvent customers
- The mis-sale of Hidden Swaps
- The mis-conduct of the banks in forcing businesses into Special Situation Management Groups and the mis-conduct of those groups
- The revaluation of property held as security by the banks
- The conduct of the banks in forcing businesses into administration and the conduct of the Insolvency Practitioners appointed by the banks
- The possibility of criminal proceedings against banks or their employees
Bully-Banks is also forging links with business and trade organisations to raise awareness of the issues, as well as raising them on a pan-European basis.