Interest Rate Swap Mis-selling Worse Than First Feared7th Jan 2014
As if it were not bad enough already, Britain’s £3 billion interest rate swap scandal may now be even worse than first thought.
Financial Conduct Authority officials say the mis-selling may affect more than 60,000 companies, compared with the 30,000 cases that the banks have agreed to review.
Significantly, the FCA also fears that banks could exploit a legal loophole to continue selling rate-hedging swaps.
There is concern that the banks may bundle swaps – which can prove costly when interest rates fall – into unregulated commercial loan agreements.
Companies mis-sold interest rate swaps have only a limited time to seek redress.
The time limit is six years but with most of the products being sold before 2008, that window is closing fast.
FCA figures to the end of November show that:
- 18,400 customers have been invited to join the review
- 6,100 are in the redress phase
- 547 compensation offers have been accepted
- 438 claims are not due redress
- only £81.2 million in compensation has been paid out so far.
It is vital to get expert legal advice as soon as possible and claim quickly – although there are ways to claim if the six-year limit has expired.
Coles Miller has launched a dedicated team to help small and medium-sized firms all over the UK to claim compensation for the damage done by mis-selling of swaps.
Has your company been mis-sold an interest rate hedging product? For expert help, contact Coles Miller.