We possess an excellent track record of acting for Lloyds bank customers in recovering compensation in many legal issues from contract disputes to financial mis-selling of insurance products and services.
If you are a caravan or leisure park owner who has taken out a Lloyds TSB 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. The FSA(The Financial Services Authority)has looked into the mis-selling of business interest rate swaps and considered that there may be a claim for compensation.
The type of Lloyds TSB 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.
The FSA(The Financial Services Authority)has looked into the mis-selling of Lloyds TSB business interest rate swaps 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), such as caravan or leisure park owners, by the four largest banks in the UK; Lloyds TSB, RBS, HSBC, and Barclays.
After a review of the mis-selling of Lloyds TSB 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, such as caravan and leisure park owners, which wouldn’t necessarily have specific expertise and understanding in this area, some products may not have been appropriate for their needs.
Many hard working, decent and dedicated caravan and leisure park owners have faced financial ruin, stress and ill-health as a result of the consequences of the mis-selling of interest swap loans. Some caravan park owners are struggling to pay the swap payments every month in addition to their loan repayments but because of the exit fees, they are unable to sell their parks or properties.
If you are a caravan or leisure park owner who believes they have been mis-sold a Lloyds TSB business loan with a swap interest rate product please do not hesitate to CONTACT US to see if you have a claim for compensation.