It is estimated that up to 40,000 small and medium sized businesses may be entitled to compensation for being sold highly complicated interest rate swap products. The products which were sold by many of the UK’s leading banks were intended to safeguard businesses against a rise in interest rates.
However, in many instances the interest rate swaps were sold to ‘non-sophisticated’ businesses without the expertise or understanding to make an informed decision.
As a result, it is estimated that thousands of businesses are now faced with massive repayments despite the current financial crisis seeing interest rates remain at historic lows.
A review conducted by the Financial Services Authority found that more than 90% of 173 sales to ‘non-sophisticated’ customers did not comply with at least one regulatory requirement and the banking sector as a whole has set aside in excess of £2bn for anticipated claims.
Many of the business involved will be contacted directly by their bank and advised that they may be entitled to compensation. However, Aidan Farry a solicitor at Recovery Assist Solicitors believes that is crucial that businesses obtain independent legal advice; “The claim process will be conducted by the banks and it is clear that they will be looking at every opportunity to eliminate a customer’s claim. By seeking independent legal advice, customers will be protecting their position and ensuring that they get the compensation they are entitled to”.
If you believe that you have been mis-sold an interest rate swap product, contact Recovery Assist Solicitors today on 0161 762 4949 to speak to one of our specialist solicitors.