The recent ‘interest rate swap scandal’ now means that many businesses throughout the UK are able to make a claim against the banks. In fact it’s thought that as many as 40,000 small businesses will be looking to make a claim since the recent judgement.
Recently the FSA have revealed that up to 10 of the major banks will now face the fact that they may have to make hefty compensation payouts after ‘risky’ products were sold to thousands of small businesses.
Businesses who signed up to the now controversial scheme were hit with huge bills after they bought into the scheme which was heavily linked to interest rates. Astonishingly it was discovered after undertaking almost 200 ‘pilot cases’ that more than 90% of customers could be victims of ‘mis-selling’.
It’s been revealed that one business has paid an astounding £750,000 in interest and when they tried to get away from their contract they were told that it would cost them £450,000.
It’s believed that thousands of interest rate swaps have been mis-sold to businesses, dating back to 2001. These ‘swaps’ were sold as ‘protection’ to businesses, or to act as a hedge to act against a rise in interest rates – however as we are all fully aware interest rates have plummeted over recent years… Watch this space for more details!