Business Swap Loan mis-selling (Interest Rate Swap Agreements (IRSAs)) is another scandal by the banks.
The FSA(The Financial Services Authority)has looked into business swap loan mis-selling and considered that there may be a claim for compensation. The FSA has provided a review of business swap loans sold to small to medium size businesses (SMEs) by the four largest banks in the UK (including Barclays, HSBC, Lloyds TSB and RBS).
If you have taken out a 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 swap loan mis-selling. For further information on business swap loans mis-selling please contact us for free initial advice.
There were different products sold with business swap loans, these 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 business swap loans or Interest Rate Swap Agreements (IRSAs), 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 business swap loan or Interest Rate Swap Agreements (IRSAs) pleasecontact usto see if you have a claim for mis-sold business swap loan compensation. You could be owed £thousands!
If you are a small to medium, size business that has been mis-sold a business loan with a swap interest rate product please do not hesitate to Contact Us to see if you have a claim for compensation.
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