Small businesses must get better protection from problems caused by their banks, a county business chief has said.
Norman Tenray, chief executive officer at Longridge-based OBAS UK, said the impact of the recent IT failures by TSB on small firms highlighted the need for the regulator to do more to support. Currently the independent Financial Ombudsman Service protects consumers, many small businesses will be left to fend for themselves.
OBAS UK is sponsor and judge of the Small Business of the Year category at this year’s Be Inspired Business Awards.
Mr Tenray said: “In the case of TSB, the bank has gone some way to cover the costs incurred by small businesses as a result of its IT failure, there are consequential losses which it has yet to resolve and some it cannot resolve.
“The reputational damage an issue like this can cause with customers or suppliers is something which is difficult to quantify, but could be extremely damaging to a small business. There will be a small number of firms which will be protected by the FOS but for the rest the small claims court is the only way forward - costing extra time and money.”