Banks And Small Businesses

EDM number 1171 in 1992-93, proposed by Paddy Ashdown on 14/01/1993.

That this House believes there is mounting evidence that considerable numbers of small businesses have been unfairly treated by their banks, with many cases of overcharging, lack of notification and hasty foreclosure, and that since economic recovery and a reduction in unemployment will only be brought about through a revival of the small business sector this matter should have had the Government's full attention months ago; notes that the Government is in the process of a second inquiry in two years into this issue but have still yet to report to Parliament on its findings; and urges the Government to require banks to provide their customers with a contract when lending money and to establish an ombudsman for small businesses which is independent of the banks and includes customer representation, which has the powers to order compensation where misconduct or overcharging have been proved and which reports directly to Parliament on an annual basis.

This motion has been signed by a total of 47 MPs.