Barclays has been censured by UK watchdog over its treatment of small businesses. Bank made smaller firms open account to access other products, reported Small Business Co.
About 800 affected Barclays small business clients shared the £2,000 compensation. The financial services group reported pre-tax profits of £1.5bn in the first quarter.
Britain’s competition watchdog the Competition and Markets Authority has told Barclays to improve the way it treats small businesses. The rules, which Barclays signed up to in 2002, prevent banks from insisting that businesses open or maintain current accounts before they can access other products.
“The bank’s actions led to unnecessary costs to some SMEs who were made to hold accounts they did not need,” the CMA said.
But it was Barclays itself that turned whistle blower, reporting its transgression to the CMA, and it has since moved to patch the problem, allowing affected customers to switch accounts.
Full Content: Small Business