Interest Rate Swaps – have you got a claim?
In the financial year you entered into the IRS agreement, did your business:
- Have a turnover of 6.5 million or less?
- Have a balance sheet of 3.26 million or less?
- Have less than 50 employees?
If you have answered yes to any of these questions, according to FSA guidelines you may have been a victim of the financial mis-selling of interest rate swaps.
In addition, the FSA has stated that those customers without the necessary experience or knowledge to understand the product being sold, including its complexity and the risks involved may also have been mis-sold these products.
If you do not meet the FSA guidelines with regard to being a person likely to have been mis-sold interest rate swaps you may still have a claim. Please contact us to discuss your claim in more detail.
Type of claims arising
The majority of interest rate swap mis-selling disputes are likely to fall into the following categories:
- Where the customer did not fully understand the product being sold. Where the customer was not aware that the hedging product sold did not form part of the business loan.
- Where the customer was not informed as to what would happen should interest rates fall to their current level.
- Where the customer was not made aware of the magnitude of the break cost.
- Breaches in relation to the provisions of the Financial Services and Markets Act 2000.
- The appropriateness of the banks’ promotional materials; particularly in relation to presenting the product as ‘low-risk’.
- The customer was not made aware of the bank’s ability to terminate the product.
- Unsolicited approaches to recommend the purchase of interest rate swap products.