Interest Rate Swap Products

Dominic Raab Excerpts

Thursday 21st June 2012 Commons Chamber

[Emma Reynolds]

I shall not speak for much longer, as I know others want to contribute.

Let me end by asking the Minister a few specific questions. Will she reassure us that the Government are taking this issue seriously? What are the Government doing to ensure that SMEs struggling with these swap agreements are supported in the short term and will not have punitive measures imposed on them by the banks if they complain? What steps are the Government taking to ensure that this practice will not happen in future? Do they have any idea of the time scale for the Financial Services Authority report?

[Mr Dominic Raab (Esher and Walton) (Con)]

The hon. Lady is making her case in a typically powerful way. One of my constituents sought legal recourse against Barclays and was subsequently threatened with foreclosure of his loan, which would result in him being forced to sell his house, even though he was not in arrears, unless he signed a waiver removing his right to take legal action. Does the hon. Lady agree that such punitive action is utterly unconscionable?

[Emma Reynolds]

I think it is utterly disgusting that this is happening. We are told that our banks are too big to fail. They have taken advantage of significant Government intervention, yet now we find that they are not even supporting viable small businesses across the country. Something needs to be done about this urgently, so I look forward to hearing what the Minister has to say.