Mis-selling could cost banks £1.5billion
The Financial Services Authority (FSA) has found that several banks have been breaching various regulatory requirements when selling interest rate hedging products (IRHPs) to small companies. As a result, your business may be entitled to compensation. Stone Rowe Brewer LLP can assist with your claim.
An IRHP is a form of interest rate swap, whereby a variable interest rate on a loan is swapped for a fixed interest rate. This can benefit the customer if interest rates are on the rise. However, since interest rates have been falling in recent years, businesses that have bought an IRHP may be paying a higher interest rate than they would have been if they had not bought the product.
According to the FSA, the banks involved (Barclays, HSBC, Lloyds and RBS) will have to compensate companies which were “unlikely to have the specific expertise to understand all of the risks associated” with IRHPs.
If you believe that your business may have been mis-sold an IRHP and you wish to make a claim for compensation, please contact the litigation department at Stone Rowe Brewer LLP on 0208 891 6141.
Further information is available on the FSA’s website: