Businesses Mis-sold Interest Rate Swaps pushed into Administartion
The taxman has been accused by MPs of pushing businesses that were mis-sold interest rate swaps into administration despite knowing the financial problems faced by the firms.
Guto Bebb, head of the all-party parliamentary group on swap mis-selling, said MPs had “concerns” that HM Revenue and Customs was being “rather less than sympathetic” in its handling of cases involving businesses mis-sold complex interest rate derivatives by their lenders.
“It is very concerning to see that HMRC appears intent on pushing businesses that might well be eligible for redress into administration,” said Mr Bebb in a letter to Mike Eland, director general for enforcement and compliance at HMRC.
Mr Bebb said that, while some of the banks accused of mis-selling swaps to their small business customers had allowed victims to cease making payments during the investigation of their cases, the tax authorities had shown no such flexibility.
Businesses have complained that HMRC has pursued tax demands against them despite them pointing out that the costs of servicing their swap has left them unable to afford to pay.
More than 50 MPs have joined the swap mis-selling group as the scale of the scandal, first highlighted by The Telegraph, has become apparent.
The Financial Services Authority estimates that more than 40,000 swaps were sold to smaller businesses by their banks. Barclays, HSBC, Lloyds Banking Group and Royal Bank of Scotland are currently reviewing their sale of the products and are expected to compensate some customers.
Reported : http://www.telegraph.co.uk/finance/rate-swap-scandal/9694506/HMRC-very-disappointing-over-swap-mis-selling-say-MPs.html
Interest Rate Swaps – Interest Rate Protection Arrangements
Due to the terms and conditions of many arrangements, they have not only prevented customers from benefiting from falling interest rates, but have also tied them in to these costs because of substantial charges to end the contract, even if they want to repay all or part of their loan early. The banks, however, can often end the contract at no cost if the interest rate limits look unfavourable to them.
MapleFinancial Interest Rate Swap Claims Service
We have a specialist team of solicitors dedicated to dealing with the mis-selling of interest rate protection products by the banks. We are very happy to review these relatively complex arrangements and to claim compensation for our clients where appropriate. Please do not hesitate to call and we will be happy to discuss your individual concerns and requirements.
Justifed Claims for Interest Rate Swaps – Interest Rate Protection Arrangement Claims
- discrepancies between the underlying value of the loan and the interest rate swap, with customers being sold swaps which far exceed the term of their underlying borrowing, or where the notional amount of the swap is far in excess of the actual borrowing.
- substantial discrepancy between the length of the loan facility and the length of the swap product.
- customers being forced to continue with the interest rate hedges in order to maintain their current lending facility upon renewal.
- banks failing to explain to their customers the extent of the exit or breakage costs of the swaps and failing to ensure that the derivative products offered meet the needs of the customers.
- breaches by the banks of their duty of care to customers coupled with negligent misrepresentations by the banks as to the nature or effect of the products sold.
- failure by the banks to comply with their regulatory obligations under the FSA Conduct of Business.
Interest Rate Swap News
Dealing with Consequential Loss from Interest Rate Swaps
When will the investors who were mis-sold interest rate swaps (IRS) be compensated for their losses? The High Street banks were paid in 2008, but why aren’t the regular investors being compensated? The banks have admitted guilt. So why the slow process?
The UK has changed its primary financial regulatory agency and made new rules. In November 2013, there are promises for letters dealing with consequential loss from interest rate swaps. Here are the details and what you discover when you “read between the lines.”
What is the FCA Sophisticated Customer Test?
In January 2013, the FCA published what it found with regard to the pilot review scheme for the mis-selling of IRHPs, or interest rate hedging products, otherwise known as swaps. In a number of ways, the results were welcomed: the company found over 90 percent of sales to “non-sophisticated” customers did not comply with regulatory requirements, such as the COBS Rules. In addition, the FCA noted that most of these sales have the chance to result in redress to the customer.
FCA: Interest Rate SWAP redress set to Increase
One of the biggest scandals to affect the financial industry in recent decades has been the rise to prominence, and subsequent crash, or interest rate swaps and related securities. In a period of stock marketing trading and banking practises that were generally less regulated than in earlier eras, these products played a central role in boosting consumer fortunes and building up economies both in the United Kingdom and around the world. Their subsequent fall from grace led to one of the biggest financial crises of the last half-century.
Interest Rate SWAP Claims
Maple Leaf Financial have a specialist team of solicitors dedicated to dealing with the mis-selling of interest rate swap protection products by the banks. We are happy to review these relatively complex swap arrangements and to claim compensation for our clients where appropriate.
If you believe you have incorrectly been classified as a ‘sophisticated’ customer and have, therefore, not been eligible for interest rate swap redress. Maple Leaf Financial will review your interest rate product and we will be happy to discuss your individual concerns and requirements
Tim Capper reports on Financial Mis-Selling for Maple Leaf Financial. Our aim is to ensure you get honest advice and proper guidance to ensure a suitable recommendation can be made to pursue a financial claim
Latest posts by Tim Capper (see all)
- PPI Claims Currently Show No Sign of Slowing Down - December 10, 2014
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- FCA updates PPI redress for 2.5 million old PPI complaints - October 27, 2014