Friday, 20 July 2012

Interest Rate Swap Mis Selling

What is interest rate swap mis selling?

There are varied and complex versions of swap products, however in their simplest form, with an interest rate swap, the customer agrees a rate of interest with their bank. If interest rates rise, the bank pays the difference. If interest rates fall the customer must pay the difference to the bank. Unfortunately many banks have not fully explained the risks or indeed the extortionate costs to exit these swaps.

In recent years High Street banks have been advising potentially inappropriate Interest Rate Swap (IRSA) products on small and medium enterprises (SME’s). These complex products carry significant risks to businesses and issues have arisen which make it clear IRSA’s have unfortunately in some cases been mis-sold which has resulted in some businesses going into administration or liquidation.

Interest rate swap agreements (known also as interest rate hedges or derivatives) were introduced to small to medium businesses from early 2000 and were sometimes conditional in the terms of the borrowing arrangement.

Businesses affected but not limited to, include:
•    Bar & Restaurants
•    Boarding kennels
•    Care Homes
•    Day Care Nurseries
•    Farmers
•    Franchise owners
•    Garden Centres
•    Hotel businesses
•    Mobile Home Parks
•    Property developers
•    Publicans
•    Shop owners

Stellar Legal believe it’s possible any business that has borrowed money in the previous ten years may have been mis-sold IRSA’s by the high street banks. Some of Britain’s biggest banks have admitted to interest rate swap mis selling and have been fined £billions accordingly and quite rightly, business borrowers may be wondering if they can make a financial claim.

- Were you warned of the high break costs associated with your IRSA?
- Was the product explained to you in full?
- Were the risks associated with an IRSA disclosed to you?
- Were you pressured into taking the product?
- Were you told you would be able to take a loan without also purchasing an IRSA?
- Have you now realised that this was in no way fit for purpose or appropriate for your company?

Other factors of consideration need to be determined before proceeding with a claim and our financial specialists and highly experienced solicitors will only proceed in the knowledge you have a chance of success, although not guaranteed, will be clearly explained giving you an informed decision to make before proceeding with a complaint to the lender. We’ll require the following details;
•    The type of business
•    The bank being contested
•    The advice given and the amount of information provided
•    The terms of the Interest Rate Swap

Rate Swap Mis-selling Compensation

If you think you have been a victim of rate swap mis-selling you can call our professional legal team for honest, professional advice. Wherever financial negligence has occurred, our solicitors will work tirelessly to get you the compensation you’re entitled to.
Often the banks have refuted the claims outright or have protracted their responses in order to trigger the time constraints set by the Financial Ombudsman Service.
In a number of circumstances, however, banks have already settled cases out of court amounting to hundreds of thousands of pounds.

How Our Service Works

Stellar Legal is here to dispute the selling of these Swap products on your behalf. Our service includes;
1.    A full review and redress service for businesses that may have been sold an unsuitable swap.
2.    Review of the sales process, the position of the business at the time of the swap and the technical details of the contract.
3.    Where the business is within the FOS jurisdiction, we will process the complaint to conclusion.
4.    If the business is outside of FOS jurisdiction, our Solicitors will litigate the claim (subject to ATE).

Our understanding and professional relationship with the Financial Services Authority (F.S.A.) as well as our in-depth understanding of Swaps, ISDA Master Agreements and Schedules not forgetting to mention our knowledge of the Financial Ombudsman Service (FOS) processes and access to ATE insurers, allow us to provide an extremely proficient service and manage your claim promptly and efficiently.
To find out if you have been a victim of interest rate swap mis selling visit where we will be happy to assess your issues, and identify how we can assist you in resolving these concerns as swiftly as possible.

Our goal is to provide a professional interest rate swap mis selling claim service that ultimately clears your claim issues and gets you the compensation that is rightfully yours.

To see if you may have been mis-sold an interest rate swap visit:

Stellar Law is a Financial Claims Company authorised and regulated by the Ministry of Justice in respect of regulated claims management activities, (Authorisation No: CRM15623).

Stellar Law. International House, 223 Regent Street, London W1B 2QD. Registered in England as a Limited Company Registration No. 06610207

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