The Business Banking Resolution Service (BBRS), a bank dispute ombudsman launched two months ago, is targeting this summer for its first pay-outs to small firms.
The BBRS cost a total of £23 million to set up, with this expense having been divided between seven major banks. It was originally supposed to have its launch last November, but that was pushed forward to February 2021. However, no small firms have yet received any damages due to them after bank disputes were settled in their favour.
Now, a spokesperson for the voluntary ombudsman has stated that it expects to change that situation during the summer. Prior to its launch, around 500 smaller firms registered claims for disputes with their banks, while another 160 are currently being processed. There have also been a further 48 firms registering claims in the last two months.
The decision to set up this ombudsman was made after research showed that small businesses in their thousands were suffering severe financial effects due to ongoing disputes with banks. While the money to create it came from banks, it operates with complete independence and provides small firms with a genuinely impartial authority to settle any problems they have with their banks.
Keeping proper financial records will be a considerable help to firms in trying to resolve disputes of that kind. This is one of the reasons why the owners of small firms often choose to hire affordable business accountancy services in Doncaster or wherever they live to handle the management of their books.