Interest rate swap loans were designed to provide protection for SMEs against future interest rate rises but were inappropriate for large numbers of customers, many of whom would not have been granted the loan without entering into a complex structured deal, often for a very lengthy period.
Interest rate swap loans are complex products, which banks mis-sold to businesses alongside loans to protect them against rises in interest rates, in anticipation of interest rates going up. However, these interest rate swap loans have caused severe problems for businesses when interest rates subsequently went down, and The Financial Services Authority(FSA) believes that banks did not do an adequate job of warning customers about the risks of Interest Rate Swap loans in the event of interest rates dropping. It was also discovered that in some cases borrowers had been pressurised to sign up or told that the interest swaps were obligatory or made them more likely to succeed in their applications.
The banking industry failed to advise the small business owner of the risk and pitfalls in detail, failed also to advise the business owner of the onerous penalty clauses for cancelling the business swap loan resulting in unfair lock-ins. The bank, however, had a far less onerous “get out clause” if the interest rate fluctuation did not suit them. Thus, it has now become apparent the bank was protected more than the customer and it was normal practice to emphasise the rewards and de-emphasise the risks. For more information, please do not hesitate to Contact Us.
Bank customers who consider they may have been mis-sold these financial products should seek legal advice without delay. Banks are likely to argue that mis-selling claims are time-barred 6 years after the date of the sale of the financial product which is the subject of the complaint (or possibly even earlier).
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.
We have an excellent track record claimingcompensation against major banks and lending institutions for mis-sold insurance contracts and products. There is no conflict of interest with us or any bank. As a specialist firm of solicitors we have no fear in taking on large banking institutions, we do not have an overdraft facility or even borrow any money from any bank to run our own business. In fact we threatened to take legal action against our CREDIT card provider because they tried to stop our taking card payments from clients who were taking action against banks for mis-sold PPI.
Payment Protection Insurance Claims (PPI)
We have an excellent PPI claims success against all the major banks and lenders for mis-selling PPI. Over the last 5 years we have acted for thousands of clients who have been mis-sold PPI.
We have been handling PPI claims both through the banks direct, the Financial Ombudsman Scheme (FOS) and in Court. The latter offers expert advice especially where the FOS has rejected the PPI claim or where the banks are intending to take possession of our client’s home.
Our advice is extensive and we have developed now for a number of years a dedicated web site to help client who have been mis-sold PPI with a loan or credit card.
If you require a specific page for a lender click on the following links for the major banks who have mis-sold PPI:-
How to claim back First Plus PPI
How to claim back Lloyds PPI
How to claim back Barclays PPI
How to claim back Blackhorse PPI
How to claim back Welcome PPI
How to claim back Picture PPI
How to claim back HSBC PPI
How to claim back Halifax PPI
How to claim back Magic PPI