Business Banking Resolution Service should be abandoned and replaced with independent review, says businessman

Clive May’s comments follow criticisms of the Business Banking Resolution Service from Yorkshire MP Kevin Hollinrake, who described it as an embarrassment to the banks that established it.

The BBRS is a non-profit organisation set up to resolve disputes between eligible larger SMEs (small and medium-sized enterprises) and participating banks. It has been established to resolve eligible historical and current complaints for small and medium sized businesses that have not previously had access to independent review.

Mr May, who is the former director of C May Brickwork Limited, had contacted the BBRS with a complaint about National Westminster Bank.

According to documents seen by The Yorkshire Post, an assessment found that Mr May’s complaint was ineligible for BBRS because it had previously settled. However, a lead case assessor asked the bank to give consent for it to be admitted to the scheme as a concessionary case.

Mr May told The Yorkshire Post: “BBRS can see there are issues but have let the bank have the final word. The bank have refused.”

He added: “How can this scheme be defined as a resolution service?

“Over 400 of us signed up to the BBRS detailing in brief our cases before any rules were in place. The whole scheme needs abandoning with each case subject to a wholly independent review.”

Earlier this month, Mr Hollinrake, who is the co-chairman of the All Party Parliamentary Group on Fair Business Banking, said he was seeking a debate in Parliament to highlight the problems faced by business owners who are pursuing legitimate grievances against the banks.

He made the comments after the BBRS confirmed that just one complainant has gained compensation in the period from its formation on February 15 until August 31.

A BBRS spokesman said: “As of 31 August eight cases have resulted in an outcome, but we can’t provide details on what the outcomes were yet because the cases are still officially open. We can only report on fully closed cases, of which one has received a financial award.”

Speaking in a Parliamentary debate Mr Hollinrake said: “The Business Banking Resolution Service is at the moment a pure embarrassment to the seven banks that established it. It hears very few cases. Of the 626 cases that have currently applied to the scheme, only 90 are likely to be deemed eligible.”

Mr Hollinrake said that, of the 10 cases that have fallen in the concessionary area, that the BBRS has recommended the banks accept into the scheme, only one has been accepted “which is absolutely wrong”.

He told MPs: “The BBRS needs more independence and more jurisdiction.”A UK Finance spokesperson said: “The BBRS was created in close collaboration with business groups and SME representatives It provides a wholly independent dispute resolution service for historical cases where businesses have not previously had an opportunity for their complaint to be externally reviewed. In addition, around 99 per cent of small businesses can now use this new resolution service or the Financial Ombudsman Service.”

A BBRS spokesman said: “Through the Concessionary Case process ,the BBRS can make a recommendation for a member bank to consider a case that would otherwise be closed. If the bank does not agree with the grounds to reconsider the case it must provide the BBRS and the customer with a detailed explanation. Should the BBRS not be satisfied with the reasons provided we would seek further engagement with the bank.”

A NatWest spokesman declined to comment on Mr May’s case.

Earlier this month, Chris Wilford, Head of Financial Services policy, at the CBI, said the BBRS was starting to make an impact and has an important role in rebuilding trust between banks and their customers at a crucial time for the UK economy.

He added: “Lenders played a vital role throughout the coronavirus pandemic, with nearly £80 billion of emergency government-backed loans providing businesses with critical cash flow support, many of whom had never borrowed before.

“It is important as we look to the recovery we deal with the legacies of past to ensure we have a firm foundation for growth.”

"The CBI was part of the steering group which set up the BBRS reflecting the importance of this issue to our members and continues to work with all concerned to move the BBRS forward.”