The Federation of Small Businesses (FSB) has attacked a provisional decision by the Competition Commission to lift price controls on the big four business banks.
The FSB says it has provided strong evidence which suggests Barclays, HSBC, Lloyds TSB and the Royal Bank of Scotland are not complying with undertakings they signed up to in 2002.
Under the deal the banks agreed to offer small businesses an account that pays interest on credit balances of at least 2.5% below the base rate or provide free banking, or both. In addition, they agreed to advertise these benefits to their customers.
However, an FSB survey of 4,000 small businesses found that more than half had not been offered either option.
The FSB says it has provided strong evidence which suggests Barclays, HSBC, Lloyds TSB and the Royal Bank of Scotland are not complying with undertakings they signed up to in 2002.
Under the deal the banks agreed to offer small businesses an account that pays interest on credit balances of at least 2.5% below the base rate or provide free banking, or both. In addition, they agreed to advertise these benefits to their customers.
However, an FSB survey of 4,000 small businesses found that more than half had not been offered either option.
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