We can help you get redress if you have been unfairly sold an interest rate swap which was for the bank’s benefit not yours. These complex financial products were often sold where a small to medium sized company took out a business loan and the bank required the business to enter into an interest rate hedging instrument (interest rate swap) as a condition of getting the loan. It has been estimated that around 40,000 businesses were mis-sold these products when the banks knew full well they were unsuitable for the client.
Interest rate swaps mis-selling typically occurred where the bank failed to give proper information to the borrower before the interest rate swap was entered into. Also banks gave misleading information on the penalties should a company wish to exit the swap. Finally, interest rates were fixed at unsuitable levels taking into account the then market and the duration of the customer’s loan.
What are interest rate swaps?
The swaps were ostensibly to protect businesses from future upwards movements in interest rates. However, rates are and have been very low for some years and yet businesses are not benefitting from these low rates as they are still tied into the swap rates. Worse still, the exit charges banks make for trying to leave one of these agreements are extraordinarily high; sometimes up to half the value of the loan – that’s on top of the arrangement fees, interest already paid and of course the loan itself.
Many companies are now suffering as a result of entering into these complex financial products, incurring huge costs which they were never warned about at the outset.
The Financial Services Authority has made a number of findings against the main banks who have been guilty of malpractice. Not everyone expects the banks to deal quickly or fairly with complaints to them. Redress Law offers a robust and determined approach to obtaining proper redress for you and your business. Please note that there are strict time limits governing claims of this nature. If you believe you may have been sold an interest rate swap (or similar interest rate hedging instrument), you should seek advice as soon as possible.
Interest rate swap solicitors
If you want to find out more about interest rate swaps and talk about obtaining redress, we will be able to advise on the best means of funding and can generally accept cases on a no win no fee basis. We will fight your case with expertise and determination to ensure you obtain redress. For more information, contact us on 0292 0507 507 or click here to email us.
