Enterprise Finance Guarantee Scheme

(asked on 16th October 2014) - View Source

Question

To ask the Secretary of State for Business, Innovation and Skills, what assessment he has made of the number of (a) cases of mediation undertaken between banks and individuals or companies and (b) outcome of mediation following use of the enterprise finance guarantee scheme.


Answered by
Matt Hancock Portrait
Matt Hancock
This question was answered on 24th October 2014

Operation of the Enterprise Finance Guarantee (EFG) is devolved by the Department for Business, Innovation and Skills (BIS) to the participating lenders. BIS monitors lenders’ administration of EFG but does not intervene in individual disputes between lenders and borrowers.

If a borrower has a complaint regarding their loan they should initially follow their lender’s internal complaints process. If that does not provide a satisfactory outcome then in most cases they have the option of approaching the Financial Ombudsman Service.

Use of mediation as a means of resolving any disputes which may have arisen between participating lenders and borrowers who have received an EFG-backed loan is a matter for the lender and borrower.

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