Small business leaders are calling for bank chiefs to be made accountable for the mis-selling of policies designed to protect borrowers from interest rate rises and for a moratorium on policy premiums.
Federation of Small Businesses regional chairman and Sheffield businessman, Gordon Millward, says suspending repayments would relieve and possibly rescue small firms that have been burdened with huge bills that have ruined some of them.
“At what point will big banks’ chief executives take responsibility for the litany of scandals their employees have been found guilty of and which are causing untold damage to small businesses and Britain’s economy?” asked Mr Millward.
“It is not enough that the guilty banks should simply be forced to repay the money they tricked out of their small business customers.
“The situation will not improve until and unless punitive measures are taken to stamp out these sharp practices and the fundamental attitude of the banks towards their small business customers changes.
“The top managers of these huge institutions must be held accountable.”
Mr Millward said Britain’s hope of emerging from recession depends on small firms, but their optimism was being shattered by an ever increasing number of banking scandals, prompted by a lack of competition and regulation.