The mis-selling of business interest rate loans (business swap loans) is another scandal by the banks.
If you have taken out a Barclays business loan and was advised to take out a product alongside the business loan that was supposed to protect you against the rise of bank loan interest rates, you may have a claim for business loan mis-selling. For further information on these business swap loans please contact us for free initial advice.
The FSA(The Financial Services Authority)has looked into the mis-selling of Barclays business loans and considered that there may be a claim for compensation. The FSA has provided a review of the interest rate swap loans sold to small to medium size businesses (SMEs) by the four largest banks in the UK (including HSBC, Lloyds TSB and RBS).
The type of Barclays business interest rate loan mis-selling are listed below, taken from the FSA web site:
- swaps– which enables the customer to ‘fix’ their interest rate
- caps– places a cap on any interest rate rise
- collars– enables the customer to cap interest rate rises by limiting rate fluctuations to within a simple range
- structured collars– enables the customer to cap interest rate rises by limiting rate fluctuations to within a range (with a lower ceiling than a simple collar) but involves more complex arrangements if base rate falls below floor limit.
After a review of the mis-selling of Barclays business loans or swap loans, the FSA found that when properly sold, in the right circumstances to the right customers, these products can protect customers against the risk of interest rate changes. However, when sold to ‘non-sophisticated’ customers, likely to be smaller business which wouldn’t necessarily have specific expertise and understanding in this area, some products may not have been appropriate for their needs.
If you are a small to medium size business that has been sold a Barclays business loan with a swap interest rate product pleasecontact usto see if you have a claim for Barclays mis-sold interest rate swap compensation. You could be owed £thousands!