Mis-Sold Swaps

Missold swaps and other complicated financial instruments are causing severe financial difficulties to small and medium-sized businesses nationwide.[dt_gap height=”10″ /]

Michael Lewin Solicitors are here to help the small and medium-sized businesses that have been mis-sold a complicated financial instrument by their lender upon taking out a loan with their bank. The four banks mainly responsible for selling interest rate swap products inappropriately to small and medium-sized business enterprises are HSBC, Lloyds, Royal Bank of Scotland and Barclays.[dt_gap height=”10″ /]

Your business may have been affected by the latest scandal to hit news headlines involving the mis-selling of interest rate swap agreements to small business owners with little understanding of the complexities and risks involved in these financial instruments. In order for an interest rate swap product to be beneficial to a company, the company must have experience in analysing and studying market trends which is not something “non-sophisticated” business borrowers generally possess. Banks in need of a profits boost have sold these complicated products to as many as 40,000 businesses that were not in need of such an instrument. The personnel at the bank responsible for selling these products inappropriately used a number of methods to make a sale without any regard to the detrimental impact it could have on the buyer.[dt_gap height=”10″ /]

If you believe your business has been affected detrimentally by missold swaps or other complicated financial instruments, Michael Lewin Solicitors strongly recommend you seek legal advice immediately because your business could be entitled to claim tens of thousands of pounds in redress.[dt_gap height=”10″ /]

When a bank is selling complicated financial products to a borrower, there is a duty of care on behalf of the bank which is dictated by the type or class of customer they are selling to. It is the duty of a seller to ensure the product they are selling or marketing is appropriate for the needs of the buyer; in numerous cases of swaps mis-selling it is clear that the banks have failed in their duty to ensure the product they sold was suitable for the needs of the business they sold it to.[dt_gap height=”10″ /]

“Meant to protect against a sudden sharp moves in interest rates, there has been concern that many such customers either did not know what they were signing up for all were forced into taking them out. Some of those businesses have since gone to the wall because they have effectively been locked into cripplingly high rates despite Bank of England base rates falling to near zero as a result of the financial crisis and subsequent recession.” – The Independent, 29 June, 2012 discussing interest-rate swap agreements and the way in which they were sold to unsuspecting small businesses inappropriately.[dt_gap height=”10″ /]

If you would like to claim mis-sold swaps compensation because your bank sold you a complicated financial instrument without ensuring it was suitable for your needs, you need to call Michael Lewin Solicitors as soon as possible on 0844 499 9302

Recent Posts

Leave a Comment