It is important to note that interest rate hedging products when sold in the right way, to the right customers can be entirely appropriate.
The problem arises where the customer did not fully understand the product being sold.
Banks’ legal responsibilities
The banks and financial institutions selling Interest Rate Swaps are legally obliged to ensure that certain criteria are met prior to setting up a contractual agreement, including:
- The IRS is suitable and relevant for the customer
- The customer fully understands the product
- The customer is completely aware of the risks involved
Problems have arisen when the correct procedures have not been followed by high street banks.
Many businesses are discovering that they have been a victim of interest rate swap mis-selling due to a financial institution failing the live up to their obligation, pushing a product upon them and therefore, leaving them to face financial difficulties as a result of significant changes to the current financial climate.
If you fall into the criteria laid down by the FSA contact us to discuss the initial merits of your claim. One of our qualified solicitors will then get in touch to talk you through the next steps.
If you are in any doubt as to whether you meet the criteria, or if you don’t meet the criteria but believe you may still have a case, please contact us on firstname.lastname@example.org to discuss your situation in more detail.