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| Version 0 | Version 1 |
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| MP urges probe into HBOS loans | MP urges probe into HBOS loans |
| (about 6 hours later) | |
| Lib Dem Treasury spokesman Vince Cable has called for an investigation into allegations of financial irregularities at HBOS. | |
| Mr Cable said of the BBC File on 4 probe: "If half of what I hear is true this is a very, very serious matter." | |
| MPs have criticised Lloyds Banking Group, HBOS's owners, for not properly investigating business customers' complaints. | MPs have criticised Lloyds Banking Group, HBOS's owners, for not properly investigating business customers' complaints. |
| But a Lloyds statement said it had acted "in a fair and responsible way". | But a Lloyds statement said it had acted "in a fair and responsible way". |
| Mr Cable has called on the FSA to investigate evidence of "very, very serious allegations". | Mr Cable has called on the FSA to investigate evidence of "very, very serious allegations". |
| Loan claims | Loan claims |
| File on 4 has heard from businesses who claim they were ruined by the actions of a member of the "high risk" team, based in the HBOS Reading offices, and management consultants put in to help turn those businesses around. | File on 4 has heard from businesses who claim they were ruined by the actions of a member of the "high risk" team, based in the HBOS Reading offices, and management consultants put in to help turn those businesses around. |
| Find Out More Listen to File on 4, BBC Radio 4 2000 BST, Tuesday 26 May2009, repeated 17000, Sunday 31 May 2009. Listen on iPlayer Download the podcast | Find Out More Listen to File on 4, BBC Radio 4 2000 BST, Tuesday 26 May2009, repeated 17000, Sunday 31 May 2009. Listen on iPlayer Download the podcast |
| The businesses allege that a bank executive Lynden Scourfield required them to employ consultants Quayside Corporate Services as a condition for getting a loan. | The businesses allege that a bank executive Lynden Scourfield required them to employ consultants Quayside Corporate Services as a condition for getting a loan. |
| Nikki and Paul Turner, whose music production and publishing business needed loan finance from HBOS, claimed the business suffered as a result of the involvement with Lynden Scourfield and Quayside and are currently facing eviction from their home by the bank. Their account of events is strongly disputed by the bank and Quayside. | Nikki and Paul Turner, whose music production and publishing business needed loan finance from HBOS, claimed the business suffered as a result of the involvement with Lynden Scourfield and Quayside and are currently facing eviction from their home by the bank. Their account of events is strongly disputed by the bank and Quayside. |
| Their MP James Paice told File on 4 that HBOS's new owners Lloyds are not taking seriously the Turners' complaints and those of other businesses. | Their MP James Paice told File on 4 that HBOS's new owners Lloyds are not taking seriously the Turners' complaints and those of other businesses. |
| MPs' anger | MPs' anger |
| Mr Paice added that a number of businesses ended up in more debt than before Quayside got involved. | Mr Paice added that a number of businesses ended up in more debt than before Quayside got involved. |
| He said: "The whole thing stinks. | He said: "The whole thing stinks. |
| "The contention that I and my colleagues have is that the bank or some of the bank's then officials were significantly party to allowing or indeed encouraging these businesses to get into greater difficulty than they may or may not have been in the first place they flatly refuse (to accept ) that." | "The contention that I and my colleagues have is that the bank or some of the bank's then officials were significantly party to allowing or indeed encouraging these businesses to get into greater difficulty than they may or may not have been in the first place they flatly refuse (to accept ) that." |
| Mr Scourfield refused to comment. | Mr Scourfield refused to comment. |
| Commons debate | Commons debate |
| David Mills, who founded Quayside, denied any wrongdoing and said: "I and Quayside Corporate Services acted as advisors to a number of banks and accounting firms to help implement commercial decisions made by our clients to try to turn around failing businesses. | David Mills, who founded Quayside, denied any wrongdoing and said: "I and Quayside Corporate Services acted as advisors to a number of banks and accounting firms to help implement commercial decisions made by our clients to try to turn around failing businesses. |
| "I always kept the banks fully informed of progress with the businesses. Unfortunately, in a number of cases, companies were unable to pay off large debts incurred before Quayside Corporate Services' involvement." | "I always kept the banks fully informed of progress with the businesses. Unfortunately, in a number of cases, companies were unable to pay off large debts incurred before Quayside Corporate Services' involvement." |
| No one from Lloyds Banking Group would be interviewed but in a statement it told the BBC: "We simply cannot comment on individual circumstances. However, we strongly believe that we have acted throughout in a fair and responsible way. | No one from Lloyds Banking Group would be interviewed but in a statement it told the BBC: "We simply cannot comment on individual circumstances. However, we strongly believe that we have acted throughout in a fair and responsible way. |
| "Bank of Scotland deals in a sensitive and fair way with all of its corporate banking customers, including those experiencing difficulties. We stand by our customers and support them closely in managing their financial difficulties." | "Bank of Scotland deals in a sensitive and fair way with all of its corporate banking customers, including those experiencing difficulties. We stand by our customers and support them closely in managing their financial difficulties." |
| Mr Paice has secured a Commons debate next Tuesday. | Mr Paice has secured a Commons debate next Tuesday. |