Bounce Back Loan Scheme

Treasury written question – answered on 8th October 2020.

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Photo of Tan Dhesi Tan Dhesi Shadow Minister (Transport)

To ask the Chancellor of the Exchequer, what recent discussions he has had with representatives of the banking sector operating the coronavirus Bounce Back Loan on potential difficulties customers have experienced in accessing their accounts upon applying for that financial support.

Photo of Tan Dhesi Tan Dhesi Shadow Minister (Transport)

To ask the Chancellor of the Exchequer, whether he has received representations on banks closing customer accounts after applying for the coronavirus Bounce Back Loan scheme.

Photo of John Glen John Glen Minister of State (Treasury) (City), The Economic Secretary to the Treasury

Treasury officials are in regular contact with the banking sector to solicit their feedback on BBLS, as well as all the other supporting measures implemented in response to the Covid-19 pandemic. As of 20th September, over 1.2 million facilities have been approved through BBLS representing a value of more than £38bn.

Decisions about what products are offered to specific businesses remain commercial decisions for banks and building societies, in which it would be inappropriate for the Government to intervene.

The Government believes that any dispute arising between banks and their customers is usually best resolved by the parties involved. If a customer wishes to pursue a complaint, their first recourse is through the bank's official customer complaints procedure. The Financial Conduct Authority requires banks to properly investigate all complaints and, through ongoing supervision, it continues to monitor the banks' complaint handling processes.

If a customer is not satisfied with their bank's response to their complaint, then they may wish to consider an approach to the Financial Ombudsman Service (FOS). The FOS provides a free, independent dispute resolution service for bank customers, including eligible small businesses.

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