Affected by Toxic Loans With a Stand Alone or Embedded Interest Rate Swap?
Do you or your Lawyer need EVIDENCE of mis-selling from 2001 to 2010, i.e bank pdf's, documents, screenshots of their websites showing how these IRHP were promoted? Try these links: NAB/Clydesdale/Yorkshire Bank. RBS - HSBC - Barclays - to follow
Latest TSC Committee Meeting SME Lending 17th June 2014, Read EVIDENCE submissions of affected businesses, Bully-Banks and more. Get a copy of the oral evidence transcript converted to a word.doc, includes witnesses Chris Sullivan, Derek Sach (RBS/GRG) and David Thorburn (NAB)
Are you affected by the interest rate swap mis-selling scandal? You may be if you have taken out a fixed rate business loan since 2001.
The term ‘Interest Rate Swap’ has become popular recently for all the wrong reasons. Many UK banks have apparently used complex insurance based derivatives in loan and mortgage products and sold them to small businesses, (SME’s) many around 2007/2008. Some of theses ‘Interest Rate Hedging Products’, IRHP’s are now under review.
Interest Rate Swap Misselling Destroys Lives
A large number of businesses with these ‘toxic’ loans are now struggling, many have gone into liquidation and/or bankruptcy. The consensus from SME’s is that they were missold these interest rate hedging products without any proper explanation of the risks involved. Indeed it is believed that not only did banks protect their position using these products earning millions along the way (commissions believed to be 5%), BUT many had credit default insurance, ensuring yet another payout for them, when the small business (SME) defaulted on their loans.
UK Banks which sold interest rate hedging products (swaps, caps, collars etc) with loans included HSBC, RBS, Nationwide, Yorkshire* and Clydesdale* (parent *National Australia Bank – NAB). Some 40,000 of these loans were ‘stand alone’ easily identifiable, whereas 60,000 were hidden interest rate swaps, embedded in the loans.
The interest rate hedging products consisting of ‘stand alone swaps’ are regulated by the Financial Conduct Authority (FCA) and the UK Banks have been required to review these, although they are carrying out their own reviews. Currently (and shockingly), 96% of loans reviewed have been found to be NON – COMPLIANT.
The other type of interest rate swaps are ones that are embedded or ‘hidden’ in the fixed rate loans and currently they are not under review as they do not come under the remit of the FCA.
Stand alone interest rate swap loans are properly reviewed by the banks and adequate compensation is awarded.
If you are affected then you may be entitled to compensation if your bank loan is found to have been mis-sold or bad advice.
The banks responsible for the bulk of the alleged interest rate swap misselling are HSBC, Barclays, RBS, Yorkshire and Clydesdale Banks (Clydesdale & Yorkshire Banks are owned by NAB – National Australia Bank).
The scale of the problem could cost the banks billions, as up to 100,000 of these toxic loans have been sold.