A major report by the Financial Service Authority which was published last week has confirmed that four of the major banks will start to review sales of interest rate swap schemes (IRSA) on an individual basis. If they are found to be at fault, they will provide redress to the customers affected.
Barclays, HSBC, Lloyds and RBS will start the review into interest rate hedging products (IRHPs) they sold to small businesses.
Since the scandal of alleged mis-sold interest rate swap schemes was outlined last year, the FSA has scrutinised a pilot review of sales carried out by the banks. They looked at 173 sales and found that over 90% of the sales did not comply with at least one or more regulatory requirement. A significant proportion of these 173 cases are likely to result in redress to the customer. However, the small number of typically more complex cases in the sample may not be representative of all IRHP sales.
You can read the FSA press release here: Press release
It is hoped that these individual case reviews will enable small businesses to be put back into the position they were in before being mis-sold a loan. We are currently acting for a number of businesses who entered into an interest rate “swap” or “hedge” (IRSA) agreement with their bank and are assisting them with their claims for compensation.
If you believe you have been mis-sold an IRSA please contact me: lmi@stephensons.co.uk
By commercial litigation solicitor, Leanne Millhouse
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