The Federation of Small Businesses has demanded the banks provide swift compensation to Scottish firms who were mis-sold complex financial products.
The call followed a Financial Services Authority probe into interest-rate swaps which found mis-selling in 90% of the 173 cases it initially reviewed.
Four of the UK’s largest banks Barclays, HSBC, Lloyds and RBS have already agreed to review individual interest- rate-swap (IRS) agreement sales and provide compensation where appropriate.
It is thought as many as 40,000 IRS products may have been inappropriately sold to SME businesses since the end of 2001.
The total compensation bill has been estimated at as much as £1.5 billion, and Barclays, HSBC and RBS have already set aside around £630 million to cover claims.
FSB Scottish policy convener Andy Willox said the banks had a duty to compensate customers as quickly as possible.
He said: “Scottish businesses caught up in this scandal will be pleased the FSA has recognised the vast majority of them were sold products that simply weren’t right for them.
“We believe that firms seeking redress should have their payments into these schemes suspended.
“There is still a worrying lack of clarity on what full redress looks like, with banks determining what constitutes consequential losses, and how their appeals process will work.
“Further, we are concerned that the FSA has not mandated that all payments are suspended when a firm appeals for redress.
“Now the pressure is on the banks to contact its customers. They must do so quickly and decisively to draw a line under this matter and bring the situation to a close.
“This review only covers the first four banks, with the report into the remaining seven, including Clydesdale, due in the coming weeks. The FSB will continue to fight for other firms caught up in this scandal.”
The CBI’s director for competitive markets Matthew Fell said what had happened was unacceptable.
“In resolving the situation regulators should learn from PPI, which has been a protracted affair for both consumers and banks, serving neither party well,” hesaid.
“Giving businesses prompt and proper redress will enable banks to then focus on lending to the real economy.”
Martin Wheatley, chief executive designate of the Financial Conduct Authority, said he hoped the FSA’s actions would ensure a fair and reasonable outcome for small and unsophisticated businesses.
He added: “Small businesses will now see the result of the review as the banks look at their individual cases.
“Where redress is due, businesses will be put back into the position they should have been without the mis-sale. But it is important to remember that this review is firmly focused on the particular circumstances of each sale.
“These will determine whether there were failings in the sales process and, if so, whether redress is due.”