Demand for fresh look at business banking controls
The Competition Commission (CC) should look again at its provisional decision to lift price controls on the small business services provided by the big four banks, according to the Federation of Small Businesses (FSB).
The FSB was responding to the CC's consultation on the issue, which closed on 28 September.
The big four banks - Barclays, Lloyds TSB, HSBC and the Royal Bank of Scotland group - have to offer small firms bank accounts that pay interest of at least 2.5% below the base rate on credit balances, or provide free banking, or both. These benefits were supposed to be advertised.
However, the FSB said more than 70% of firms it surveyed did not know about these agreements and more than half had not been offered any of thee options by their banks.
An FSB spokesman said:
"Small businesses cannot afford to see the banks being let off the hook. Some welcome progress has been made but there is a long way to go yet. The Competition Commission should keep the price controls in place, with a review in 2010 to reconsider their position."
