George Eustice MP appeared on the BBC Politics Show at the weekend discussing a Bill that he has introduced to Parliament that aims to curb the aggressive tactics that banks use to terrorise small business borrowers. George wants to see commercial mortgages regulated in much the same way as domestic ones are.
George knows from "first-hand experience the sharp-practice of banks", and the LPA receivers that they engage "to do their dirty work", can use to devastating effect. His family farm at Trevaskis in Cornwall was threatened by an over-zealous lender in the mid-90's and although they eventually resolved their problems through the courts - saving their business, George has subsequently met a host of people who have been affected by agressive mortgage lenders, some who have had LPA receivers sent into their property with fewer than 3 months of arrears on their accounts.
George said, "the aim of this Bill is to rebalance the law in favour of the borrower, and to protect the economic recovery. The biggest conflict between borrowers and lenders tends to happen as you emerge from a recession, this bill recognises that, and says that banks should require a court order to take possession of a property on which they have security. That is the situation with residential mortgages - I want to extend that protection to famers, shopkeepers, and all small buisness borrowers."
To watch the Politics Show article, click here (from 37 minutes).