The deadline for new registrations with BBRS is just around the corner, and consultations are launched for the new Employment Rights Bill
The Business Banking Resolution Service (BBRS) will close to new claim registrations on 13th December, so if you have a dispute with your bank, be sure to access the service asap. Consultations for the new Employment Rights Bill are also set to take place, with new measures proposed to support employers. Read on to find out more.
Having trouble with your banking?
A strong relationship with your bank is a crucial part of the success and stability of your business. You may rely on them for tailored financial solutions, ranging from short-term credit facilities to long-term loans, to support your growth plans or manage cash flow fluctuations.
At the same time, we can sometimes feel that the bank is calling all the shots, and it is difficult to get any redress when something goes wrong. If you are in that position, then the Business Banking Resolution Service (BBRS) may be able to help you.
While the service is wholly funded by the participating banks, the BBRS has been set up as a free and independent service for SME customers of banks that can help to resolve disputes. However, the service, which first opened in 2021, is scheduled to close to new registrations on 13 December 2024, so there is limited time available to start a claim.
The BBRS website provides an eligibility checker so you can check whether you are able to make a claim,
Broadly speaking, you need to have been a business banking customer of one of the participating banks, and your complaint needs to be about a banking service. The incident must have happened on or after 1 April 2019.
You need to have already made a complaint to your bank and your business would need to have had less than £10 million turnover at the time you complained to your bank.
The BBRS may also be able to look at complaints that may appear to be ineligible, so it is worth taking the time to get their advice.
If you are having problems with your bank and would like some advice or help in contacting the BBRS, please feel free to get in touch with us at any time and we would be happy to help. Remember the BBRS service will close for new registrations on 13 December 2024.
See: https://thebbrs.org/
Employment Rights Bill progresses and consultations are launched
Following the release of the Employment Rights Bill, its Impact Assessment was published last week showing that the new Bill will have a “positive direct impact on economic growth.”
The Bill received a majority vote at its second reading in the House of Commons last week, and now goes to committee stage, where it will be given a detailed examination.
The government has now launched consultations on 4 areas of the proposed legislation, which will become part of amendments that will be made to the Bill in the early part of 2025.
The consultations are as follows:
1. Strengthening Statutory Sick Pay (SSP)
The Bill will remove the waiting period for SSP as well as the Lower Earnings Limit, so that all employees, regardless of how much they earn, will have SSP available from day one of their employment.
The consultation is considering what the percentage replacement rate should be for those who earn below the current rate.
The consultation, which will close on 4 December 2024, can be found here.
2. Application of zero hours contracts measures to agency workers
This consultation is looking for views on how the zero hours contracts measures in the Employment Rights Bill can best be applied to agency workers without causing unintended consequences. It will close on 2 December 2024.
The consultation can be viewed here.
3. Creating a modern framework for industrial relations
The government is consulting on various specific measures to modernise the legislative framework that underpins trade unions. This consultation will also close on 2 December 2024 and can be viewed here.
4. Collective redundancy and fire and rehire
This fourth consultation is looking for views on measures to strengthen the collective redundancy framework and protections for employees against fire and rehire practices. The consultation closes on 2 December 2024 and can be viewed here.
New regulations of Buy-Now, Pay-Later proposed
The UK government has announced a consultation on new legislations designed to regulate Buy-Now, Pay-Later (BNPL) products. The forthcoming rules, which will bring BNPL products under the supervision of the Financial Conduct Authority (FCA), are designed to provide the same key protections for BNPL as exist for other consumer credit products.
If you offer BNPL, what do you need to know?
Affordability checks and responsible lending
Under the new rules, BNPL providers will be required to perform affordability assessments to ensure that borrowers can afford repayments. This measure addresses concerns that consumers are at risk of accumulating unsustainable debt through easy access to BNPL products. For businesses offering these services, this will mean integrating new procedures to assess customers’ financial circumstances before approving BNPL transactions.
These checks are expected to be in line with those required for other consumer credit products, such as credit cards and loans, and will help to prevent customers from borrowing beyond their means.
Clearer information and consumer rights
The upcoming rules will require BNPL providers to offer clear, accessible information to users upfront, ensuring they can make informed decisions. Businesses that offer BNPL should anticipate needing to provide more detailed and user-friendly loan terms in their online interfaces.
Additionally, consumers will gain stronger rights if they experience issues with their purchases. Protections under Section 75 of the Consumer Credit Act will be extended to BNPL users, allowing customers to seek refunds from their lender if something goes wrong with a purchase.
Access to the Financial Ombudsman Service will also provide a clear avenue for complaints and dispute resolution. Affected businesses may need to look at beefing up their customer service teams to handle any increased demand for support or redress.
Timeline and next steps
The government’s consultation on the new rules is only open for a short period until 29 November. Legislation is expected to be laid in early 2025. Once passed, the FCA will finalise the rules, which are anticipated to come into force in 2026.
The consultation can be accessed here.
In the meantime, affected businesses should closely monitor updates on the legislation’s progress and consider consulting legal or financial advisers to ensure compliance.
For those already offering BNPL, this period presents an opportunity to review and enhance your credit-assessment systems, customer communications, and support structures, ensuring your business is prepared for a smoother transition once the rules take effect.