Independent campaign group Bully Banks stated that they were mis-sold complex derivatives and set up a meeting this past week with the UK Treasury to talk about concerns they have over the way that the FSA (Financial Services Authority) currently reviews the complex derivative sales activities of banks in the UK. Paul Adcock, a key member of Bully Banks in attendance at the meeting, stated that some progress has been made during the discussion with the Treasury officials.
Adcock went on to explain that the meeting allowed Bully Banks representatives to have their voices heard and is helping to increase the amount of dialogue that occurs between small businesses and the banks. He added that the discussions are helping to put human faces onto the poor banking actions that led to the fallout.
According to Adcock, the meeting included himself, Bill Haslam, Jeremy Roe, and Ian Parker from the campaign group all of whom were able to express their concerns and views about how the FSA is handling their review.
He also mentioned that they believe that the definition of what it means to mis-sell products needs to be revisited. While the FSA paper that was released in June did offer some type of compensation to those that were mis-sold, the campaign group is concerned that there are some issues that have not yet been addressed by the UK Treasury and therefore there is room for improvement.
The campaign group also used the time to outline common examples of how the products are mis-sold such as when swap terms are made to be longer than the loan is or instances when the buyer clearly does not understand the definition of a product before they purchase it from a bank.