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BUDGET 2010: New adjudicator for credit with power to enforce judgements

The Chancellor has revealed that the Government will set up a new adjudicator to review complaints from small and medium enterprises who have been denied credit.

Delivering his Budget speech today, Alistair Darling said the new adjudicator will examine lending decisions and will have the legal power to enforce judgements where it feels credit has been wrongly denied.


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Auto-enrolment — don’t leave it too late…

With auto-enrolment (AE) well under way for the UK’s largest businesses, over the next three years an additional 800,000 smaller employers (with less than 60 employees) will start their journey to comply with the legislation. AE mandates all eligible employees and their respective employers to make regular pension contributions into a qualifying pension scheme. To learn more about the legislation read our brief Jelf AEase — simple steps to AE compliance guide.


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There are 3 comments at the moment, we would love to hear your opinion too.

  1. …….and to provide compensation when the loan ultimately goes bad????

  2. I shall look forward to seeing the terms of reference for this Quango!

    Civil Servants deciding which SME’s should get loans!!! The mind boggles! And how are they to legally enforce their ‘judgements’? In any case by the time a bank has turned down an application or, as they currently do, imposed totally outrageous and unacceptable conditions, some 2/3 months have probably passed. Any reference to an ‘adjudicator’ will require lots more paperwork, with banks sitting on documents etc… etc… Some months later the adjudicator will come up with a ‘judgement’, the bank will appeal it it goes in the applicants favour. By the time it is all sorted the business opportunity will have been missed or if the money was needed as working capital the business will have shut down either voluntarily or a forced closure.

    Probably more importantly where is this new ‘adjudicator’ going to find competent staff from?

    While banks have indeed ‘let go’ a fair number of people these will not necessarily have been those with any lending experience. Indeed I recently noticed that Barclays, for one, is actively looking for staff with SME experience to work in various areas. Obviously they don’t ‘grow their own’ any more!

    So will this new organisation be staffed mainly by Civil Servants? Who will lead it? On past performance it is unlikely they will be able to find managers with any knowledge of lending to, or running, small businesses. The lack of credible staff in this are at the FSA suggests that they haven’t a clue where to start, so what chance has this newly proposed body?

    I suggest this will never see the light of day, it will be lost in the hurly burly after the election and, having served it’s purpose of garnering a few votes (from the very gullible), would be kicked into the long grass if Labour did get back in. So it will not happen.

  3. I echo the points John Harding has put. As someone who has been through the bank lending process in 2009 and 2010 I can assure you that banks will NOT be bothered about this move. It is clear that banks are now staffed at SME level by incompetents and a higher by staff who have never run a business and have no real idea of the pressures that a missed opportunity can have on an SME.
    Any challenge to refused lending will not work. It will get very interesting to see how the government will force a bank to lend. IMHO enforcement will be a joke. In fact I very much doubt it will ever come to that…there is only one winner here and isn’t the SMEs!

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