FSB calls on small firms to be compensated for TSB disruption

The Federation of Small Businesses (FSB) has called on small firms hit by TSB disruption to be compensated.

Responding to the announcement that the Financial Conduct Authority and Prudential Regulation Authority are investigating recent IT disruption at TSB Bank, Federation of Small Businesses (FSB) National Chairman Mike Cherry, said “It’s vital that small business owners affected by the TSB meltdown are compensated. The disruption has cost small firms time and money, and left them unable to pay panicked staff. Perhaps most troubling, business accounts have been accessed by external parties who have preyed on those affected with phishing texts and emails.”

“The banking and card payment glitches that we’ve seen in recent weeks are a reminder of the importance of in-person financial support and free access to cash. Many business owners have been kept on-hold to busy phone contact centres, unable to get the help they need.”

“Bank branch closures have left many small firms with no-one to turn to when disruption strikes. Equally, LINK’s forthcoming cut to cash point funding will hurt vulnerable consumers and force small businesses to increasingly rely on card payment providers, many of which are upping merchant fees. The Payment Systems Regulator needs to step in and review LINK’s plans before real damage is done.”