GP practices among hardest hit by Interest Rate Swaps
GP surgeries are among the industries that have been worst affected by the interest-rate swaps mis-selling scandal, says law firm
Funding cuts, contract changes and other effects of Government changes to the NHS have already impacted surgeries’ bottom lines. This, along with uncertainty and funding and regulation changes in the industry, means they have suffered disproportionately from the scandal, law firm Berg has said.
As a result, many are being put under extreme financial pressure and some are being forced out of business, as they battle against large monthly payments or huge contract breakage fees.
As many as 100,000 businesses may have been mis-sold interest-rate swaps, which hedged against the risk of rising interest rates yet imposed massive charges when rates were lowered by the Bank of England following the recession in 2008.
Berg is currently advising more than 40 businesses on mis-sold swaps, of which about 10% involve GPs and dentists.
Alison Loveday, managing partner, said: “Businesses of all types have been hit hard by interest-rate swaps but GPs and dentists have really suffered. As we know, juggling patient care with running a profitable practice is difficult at the best of times.
“For businesses like these to suddenly be faced with huge costs because of financial products mis-sold to them can be crippling. Many simply don’t have the working capital to pay the large interest payments and similarly cannot afford the penalties to break the agreements.
“Against that background, it is no surprise that some are being pushed close to the edge. The guidance from us is to seek professional advice immediately to look at whether an interest-rate swap was mis-sold by a bank.”
We have a specialist team of solicitors dedicated to dealing with the mis-selling of interest rate swap protection products by the banks. We are very happy to review these relatively complex 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 redress. Maple Leaf Financial will review your interest rate product and we will be happy to discuss your individual concerns and requirements : 0800 7747624
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