Hidden Credit Liabilities: Role of the FCA

Ian Byrne Excerpts

Tuesday 14th April 2026 Westminster Hall

[Ian Byrne (Liverpool West Derby) (Lab)]

It is a pleasure to serve under your chairship, Sir Roger. I thank my right hon. Friend the Member for Hayes and Harlington (John McDonnell) for securing this debate and for his fight for truth and justice over many years.

Many believe that this issue goes to the very heart of the Hillsborough law, or Public Office (Accountability) Bill, for which I am proud to be the parliamentary lead. My focus is on ensuring that the law delivers a true legacy for the 97 who died at Hillsborough and for all those who have suffered at the hands of a state that failed them. It may also form part of the solution to the issues we are discussing today, because this is about power without accountability, when institutions close ranks and ordinary people are left to fight alone. The Hillsborough law is about driving a cultural change in institutions that resist transparency, and that is precisely where the Financial Conduct Authority is falling short. Time and again, the FCA has failed to give straight answers to straight questions. This is not regulation; it is evasion. We have seen this culture before in Hillsborough, the Post Office Horizon scandal, the contaminated blood scandal and many others. This scandal may well join that damning list of state failure and cover-up.

The 2024 report by the all-party parliamentary group on investment fraud and fairer financial services should have raised alarm bells for the then Government. A former FCA employee described it as having “the worst staff culture” of their 40-year career. We have heard that whistleblowers were sidelined, dissent suppressed and an official line enforced. This is not a regulator acting in the public interest—it is an organisation protecting itself. When regulators fail, people pay the price: water, energy, finance—the list goes on.

Let me turn to hidden credit liabilities. The APPG report highlights serious concerns about the FCA’s handling of the mis-selling of interest rate hedging products to small businesses, including the failure to address hidden credit line risks and a pattern of evasion when challenged. Take the case of Andrew Candy. In 2008, he sought a simple fixed-rate loan. Instead, he was sold a complex product without being told by the seller at HSBC about hidden credit lines, margin calls or the risks involved. He was later hit with a £70,000 break cost that had never been disclosed. His business collapsed, and he sold his family home. What followed was 17 years of stress and injustice, with no proper accountability or resolution. That story is familiar to many sitting behind me in the Public Gallery.

Even attempts at compromise were met with further loss and distress. This is not just a banking failure; it is a regulatory failure due to a fear of standing up to the big banks. Shamefully, the FCA stood by and did nothing. Worse, there are concerns that it obscured the truth, including the existence of hidden credit lines, and colluded in the practices, as we have heard from hon. Members today.

Here lies the deeper issue: the FCA is a private company limited by guarantee. It has immunity from civil liability and can resist scrutiny in the courts. That cannot stand. If there is a gap through which the FCA can escape accountability, it is our duty to close it, because no regulator should be above the law, no institution beyond scrutiny and no citizen left to fight alone. Andrew Candy’s case is not isolated, as we have heard. It is a warning of what happens when power operates in the shadows. As parliamentarians, we must shine a light, demand truth and stand with those who have been wronged.

I understand that amendments to the Hillsborough law are being considered to extend the duty of candour to regulators, including the FCA. The case for that will be compelling, certainly given what we have heard today, and is likely to command strong support in both this place and the Lords. If the Government take forward the call for an inquiry, as I hope they will and I fully support, the Hillsborough law could be a huge element in getting truth, accountability and justice. For people like Andrew Candy, it cannot come soon enough.