Britain’s four largest banks have suffered another onslaught of criticism after the financial regulator said it had found evidence of swap loan mis-selling to small and medium-sized businesses (SMEs).
After a review of these swap loan complaints and the swap loan mis-selling scandal, 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.
There has been considerable media, regulatory and political attention given to the large amounts of swap loan complaints and the mis-selling of swap loans (Swap Loans – In the News). In June 2012, the FSA has recently agreed a settlement with Barclays, HSBC, Lloyds Banking Group and Royal Bank of Scotland to pay “appropriate redress” to SMEs that were mis-sold swap loans. Thus in many cases the only issue regarding these swap loan complaints is (or should be) the question of appropriate redress for the customer.
Many swap loan complaints have found that many SMEs are now facing huge payments under these agreements which they must continue to pay for the full term of the Swaps despite the substantial changes in the economic climate. Products sold as ‘protection’ are now crippling businesses who now seek to exit the arrangements and discover that significant exit or cancellation fees are payable, these can be up to 50% of the initial loan.
Many hard working, decent, dedicated individuals have faced financial ruin, stress and ill-health as a result of the consequences of swap loan mis-selling.
We possess an excellent track record in recovering compensation in many legal issues from contract disputes to financial mis-selling of insurance products and services. For more information please visit our website www.iamhappi.com.
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.