Mis Sold Interest Rate Swaps
Interest rate swaps or hedges include a variety of different products sold to business customers to help protect them against interest rate risks. If sold correctly they can provide customers with greater certainty over future loan repayments. However, these products can be very complex and have been the subject of widespread mis-selling.
In July 2012 the Financial Services Authority (FSA) published its findings into a review of the sale of these products and found serious failings in the banks sales procedures.
If you were advised to take out an Interest Rate Swap agreement then you could be entitled to £000′s in compensation. Call one of our advisers today on 01204363979.
What exactly is an Interest Rate Swap?
Interest rate hedging products are typically sold alongside a loan and there are broadly four types of products:
Swaps – enables the customer to `fix` their interest rate
Caps – placing a limit on any interest rate rises
Collars – enabling the customer to limit interest rate fluctuations to within a simple range
Structured Collars – customers can limit interest rate fluctuations to within a specified range, but involves arrangements where, if the reference interest rate falls below the bottom of the range, the interest rate payable by the customer may increase above the bottom of the range
How do I know if I was mis-sold an Interest Rate Swap?
The following are just some examples of why the advice given to you may not have been suitable:
- The risks were not properly explained. In most cases discussions related to interest rate rises but rarely were the risks of interest rates dropping discussed
- You were told taking out this insurance was obligatory to getting the loan approved
- You were not told about the true exit costs if you were to end your loan early
- You were sold a product which did not match the amount and/or duration of your loan
What to do next
Check your loan paperwork to see if you were mis sold one of these products.
If you think you have been a victim of interest rate swap mis selling then contact one of our specialist claims advisers today and we will investigate your circumstances to see if we can help you make an interest rate swap claim.
Everything we do is on a No Win No Fee basis with nothing to pay upfront. If we are successful with your claim for a mis sold interest rate swap then we simply charge 25% plus Vat of the final payout.