MPs have asked the City watchdog to stop banks hounding indebted business customers after The Mail on Sunday revealed that an entrepreneur was going on hunger strike over the scandal.
Tory MP Kevin Hollinrake has written to the Financial Conduct Authority requesting a ‘moratorium’ that would prevent banks and debt collectors from chasing small firms through the courts if they are waiting for complaints against lenders to be examined.
The plea from Hollinrake, who co-chairs the All-Party Parliamentary Group (APPG) on Fair Business Banking, comes after ruined property investor John Guidi, 63, camped outside the offices of his bank on hunger strike last week.
Hollinrake and other MPs are concerned that potential victims are suffering ‘further damage’ ahead of their cases being considered because banks and other firms are pursuing their debts.
In Guidi’s case, his debt has been sold by Clydesdale Bank owner CYBG to an arm of Cerberus, a US private equity giant. Guidi blames CYBG for the collapse of his empire – which at its peak boasted 150 properties and annual revenues of £800,000 – and wants his former bank to step in and help him.