Maple Financial Interest Rate Swap Claims
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
FSA Review on Interest Rate Swaps & Interest Rate Hedging Products
We reviewed the types of Interest Rate products that have been sold by the four largest banks and the ways in which they were sold to SMEs.
We found that when properly sold, in the right circumstances to the right customers, these products can protect customers against the risk of interest rate changes. However, when sold to ‘non-sophisticated’ customers, likely to be smaller business which wouldn’t necessarily have specific expertise and understanding in this area, some products may not have been appropriate for their needs.
In these cases, we found that the banks did not follow our rules in a number of areas, including how a number of interest rate products were sold, in particular the sales of structured collars.
As a result we have agreed the following redress and action with Barclays, HSBC, Lloyds and RBS.
What this means if you bought a structured collar
You will be entitled to redress if you bought a structured collar product and your bank believes that you may not have understood fully what you were buying. The bank will be writing to you explaining this, and you may need to respond with further information about your case. This applies to customers who bought the product after 1 December 2001.
What this means if you bought other interest rate swaps, hedging products (except caps)
If it believes that you may not have understood fully what you were buying, the bank will ask whether you would like your case to be reviewed. Along with an independent review, it will then decide whether you are owed redress.
What this means if you bought an interest rate cap
Customers who bought caps have not automatically been included in this review. However, you can still complain to your bank if you are concerned about your product.
Justifed Claims for Interest Rate Swaps – IRSA 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 under the FSA Conduct of Business.
Swap Claims or Interest Rate Swap Claims
What is a Swap?
An interest rate swap is a type of financial transaction that occurs between two parties. Each party agrees to Read more...