The new Business Banking Resolution Service (BBRS) was launched this week as an alternative approach to settle unresolved complaints from larger SMEs with participating banks. BBRS will look at two types of unresolved complaint:
- The contemporary scheme which covers cases for the period from 1 April 2019 onwards: it is for businesses with a turnover up to £10m per annum; and a balance sheet of up to £7.5m; and which are not eligible to take their complaint to the Financial Ombudsman Service.
- The historical scheme which covers cases for the period from 1 December 2001 to 31 March 2019: it is for businesses with a turnover up to £6.5m per annum; and a balance sheet of up to £5m; and which were not eligible to take their complaint to the Financial Ombudsman Service and have not had access to an independent review.
It is hoped that the BBRS will give SMEs added confidence to take out loans and other business banking products and services knowing that, if something goes wrong, they have a route to independent resolution. An improved climate for investment will be much-needed as the economy seeks to recover. The BBRS offers an alternative to litigation, removing the cost and stress of going to court.