Emma today raised the issue of a Wolverhampton business, Guardian Care Homes, being mis-sold expensive financial products connected to loan agreements by Barclays bank.

Guardian Care Homes, whose headquarters are on Wednesfield High Street, claim they were mis-sold two ‘interest swap agreements’ which have already cost the company an estimated £12m. Emma Reynolds raised their case alongside those affecting other small and medium sized businesses in a speech in Parliament during a debate on the subject.

Speaking after the debate, Emma said:

“I recently met with the senior management by Guardian Care Homes and I was shocked by what they told me.

They were forced into taking interest swap products alongside loans from their bank without being told how costly they could become in the future.

Small and medium sized enterprises are the backbone of the British economy.

It beggars belief that banks have exploited small and medium sized businesses in this way.

I have today called on the Government to act quickly to secure protection for any business which may have been mis-sold these products and have urged them to seek assurances from the banks that any business registering a complaint on this issue will not be subject to punitive measures.”

Gary Hartland, CEO of Guardian Care Homes said:

“We are hugely grateful to Emma and her parliamentary colleagues for their support over recent weeks. Today is a wakeup call for the major lending banks who for years made millions of pounds by selling these toxic products at the expense of small businesses.

There is now cross party support for swift and decisive action to be taken by the FSA which will ensure that the banks compensate these businesses, while guaranteeing the practise can never happen again. To date SMEs have been unable or too afraid to complain but I hope now they will shout out and secure the redress they need and deserve’.