Banks mis-sold 90% of mortgage swaps
- Are you the victim of Financial Advisor Negligence?
- Have you been mis-sold a mortgage interest rate swap?
- Did the Bank pressure you into signing up to a mortgage interest rate swap which has left you hugely out of pocket?
- Did your mortgage interest rate swap cause your business to fail?
The Financial Services Authority (FSA) has claimed that Britain’s banks have sold small businesses “absurdly complex products” and that they will have to compensate 1000’s of customers who have been the victim of financial advisor negligence.
How much compensation will be paid out to customers?
Lenders have set aside more than £700 million against swap mis-selling claims, with the FSA’s findings the total bill is expected to reach at least £1.5 billion although many experts believe the final cost could easily exceed £10 billion.
What has the FSA found?
The FSA found that more than 90% of the mortgage interest rate swaps sold by Banks to small businesses could have been mis-sold.
The FSA stated that of 173 sales of interest rate hedging products sold to small businesses by the UK’s 4 largest banks, 90% “did not comply with one or more of our regulatory requirements.”
Which Banks are affected?
Definitely affected are:
- Barclays
- Lloyds Banking Group
- HSBC
- Royal Bank of Scotland
What did the Financial Conduct Authority (FCA) say?
Martin Wheatley, chief executive of the Financial Conduct Authority, accused lenders of selling small businesses “absurdly complex products” and said many customers can now expect compensation. He said:
“This marks significant progress in our review of these products. We believe that our work will ensure a fair and reasonable outcome for small and unsophisticated businesses.”
What are Mortgage Interest Rate Swaps?
Banks claimed they were a “no-cost” form of insurance to protect small businesses against a rise in interest rates, but the unregulated instruments turned into significant liabilities. They locked businesses into interest rates of between 5% and 6% above base rates and as base rates fell, the customers faced huge charges through financial advisor negligence.
Falling interest base rates which should have helped small businesses during the recession actually meant huge charges to the customers which ate away savings and destroyed small businesses.
What have the Banks said?
Anthony Browne, chief executive of the British Bankers’ Association, said:
“We are pleased that the FSA has reached agreement with the major banks to provide fair and reasonable redress for businesses affected. The announcement today will give clarity to businesses and will enable the banks to put in place the steps needed to resolve each case for customers. Where customers have suffered unfairly the banks have all agreed that they will put it right. We are prioritising those with the greatest need.”
What Do The Specialists Say about financial advisor negligence?
“If you have been mis-sold a mortgage interest rate swap get in touch immediately to claim the compensation that you are entitled to.
We are mortgage interest rate swap Solicitors who specialise in mortgage interest rate swap claims, claiming compensation for people who have been mis-sold mortgage interest rate swaps. We will run your mortgage interest rate swap claim and make sure you receive the maximum amount of mortgage interest rate swap claim compensation.”
What to do now
If you’re keen to find out more about making a financial advisor negligence or mortgage interest rate swap claim in Manchester, just do one of the following:
TELEPHONE 01663 761 890
EMAIL [email protected]