A RECENT DECISION BY THE BANKING OBMUDSMAN ON A MIS-SOLD INTEREST RATE SWAP MAY OPEN THE CLAIMS FLOODGATES AGAINST BANKS
David Astbury – Head of Commercial Litigation at AB Corporate LLP
In October this year the Financial Services Ombudsman ruled against the Bank in what may be a landmark decision in relation to mis-sold interest rate hedging – or ‘swap’ products. The decision (a successful appeal against an earlier ruling which had gone in the Bank’s favour) may mark the turning of the tide against the banks for small businesses fighting for swap compensation.
Interest rate swaps were supposedly sold by banks as a means of fixing interest rates to protect customers from base rate rises.
Three critical issues
In reaching his decision, the Ombudsman identified three critical issues: Continue reading
HUNDREDS of businesses could be entitled to compensation if they were mis-sold interest rate “hedging” products. However, if they delay in taking action they could lose out. David Astbury, Corporate Litigation Partner, at AB Corporate looks at the background to this issue and what actions businesses should be taking now.
Up to 28,000 small and medium sized businesses across the UK are receiving letters from their banks informing them that they may have been mis-sold financial products, known as interest swaps.
The move follows an agreement between the Financial Services Authority (FSA) and the banks after months of media pressure and the outcome of an FSA investigation, which concluded in June that there had been “serious failings” in the sales of swap products Continue reading