About Bully Banks
Bully-Banks was created in November 2011 by a small group of business owners in the UK each of whom had been mis-sold an Interest Rate Hedging Product (“IRHP”) by their bank. Our objective was to co-ordinate complaints by the owners of SMEs in the UK against the conduct of their banks when selling IRHPs.
We are a campaign group representing over five thousand businesspeople across the UK. They are the owners of over 2000 SMEs, each of which has been adversely affected by the misconduct of their bank.
Bully-Banks’ operating company is Ordinary People in Business Ltd. The company is limited by guarantee so we have no shareholders and are a not-for-profit organisation. Our Board of Directors is made up of businesspeople who have been mis-sold financial products by their banks. Any member of Bully-Banks is entitled to become a member of Ordinary People in Business Ltd which enables them to vote at the AGM.
Bully-Banks’ campaign has prompted:
- Significant media focus upon the mis-sale of IRHPs to SMEs by their banks
- The creation of the All Party Political Group on the Mis-selling of IRHPs in the last Parliament and the creation of the All Party Political Group on Fair Business Banking in this Parliament. (Over 110 UK MPs were members of the APPG on the Mis-selling of IRHPs.)
- Three debates in the House of Commons.
- The establishment of the FCA Review and Redress Scheme which has required the banks to pay redress of over £2.2 billion to SMEs and cancel some £1 billion of liability owed by SMEs.
- The inclusion of the mis-selling of Fixed Rate Loans (Hidden Swaps) in the Treasury Select Committee’s SME Lending Inquiry
Our continuing fight
The issues now being raised by Bully-Banks include the following:
- The shortcomings of the FCA Review with particular regard to:
- the exclusion of sophisticated customers
- unacceptable swap-for-a-swap decisions
- the failure of banks to meet valid Consequential Loss claims
- insolvent customers
- The mis-sale of Fixed Rate Loans to over 70,000 SMEs
- The down-valuation of property held as security by the banks
- The conduct of the banks in forcing businesses into Business Support Divisions and the conduct of those divisions
- The conduct of the banks in forcing businesses into administration and the conduct of the Insolvency Practitioners appointed by the banks
- The conduct of LPA receivers
- The possibility of criminal proceedings against banks or their employees