Lenders told to brace for wave of disputes on £38bn of coronavirus debt

Industry News | 17/06/20

Regulators are anticipating a wave of disputes between businesses and banks when lenders start to demand interest or repayment of the £38 billion of government-guaranteed loans that have been paid out in the past few weeks. The Financial Ombudsman Service and the embryonic Business Banking Resolution Service have been asked to build up capacity to ensure that they can handle complaints from a likely wave of business borrowers being pursued to repay the money. Regulators are on red alert after a survey of small and medium-sized businesses found that 43 per cent did not expect to pay the money back, either because they could not afford to or because they thought that they would not be pursued for it.

Source: The Times