Barclays is to pay £1.5 million in compenation for a mis-sold interest rate swap according to the Guardian. The case has been in court for the past 3 years over an interest rate swap sold to a holiday resort owner in Cornwall.
The compensation will not be paid until further losses and hardship caused by the interest rate swap has been calculated.
The need to agree to these so-called consequential losses means Barclays has not yet paid out to any customers claiming compensation for mis-sold interest rate swaps, which were intended to protect customers against interest rate rises.
The process of compensation is being overseen by the Financial Conduct Authority, which has set out rules on how each of the types of interest-rate hedging products should be handled by the banks.
According to Haslam’s solicitors, Slater & Gordon, this the largest sum offered so far by Barclays. Fraser Whitehead, head of group litigation at Slater & Gordon, which represents 250 customers claiming they were mis-sold interest rate swaps, said: “It has been a long fight and this is the first significant result anyone has had, so we are proud to have been leading the way in securing that,” said Whitehead.
Barclays said it was replacing the initial swap sold to Landish with a less complicated method of protecting him against changes in interest rates. “The review continues towards Barclays making Landish a final redress offer. We are pleased to be making positive progress with the review,” the bank said.
Haslam, who is expected to remain an active campaigner for the Bully Banks campaign, said: “I feel Barclays are starting to behave fairly to its customers, and treating us with respect”.
Maple Financial Interest Rate Swaps
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 swap claims will review your interest rate product and we will be happy to discuss your individual concerns and requirements : 0800 7747624
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