Useful Tips – Interest Rate Swap Help and Advice
Please read this and then take your own independent legal advice regarding interest rate swap products, interest rate hedging products, do not rely on any information here.
Consider joining any support groups to share and exchange information with members which may help you, such as NAB Customer Support Group (for customers of Yorkshire Bank and Clydesdale Bank owned by National Australia Bank – NAB, membership is FREE), and Bully Banks (paid membership).
These groups are an invaluable source of help and advice..
If you have taken out a FIXED RATE loan with a Bank since 2001, then the loan or part of it may contain an Interest Rate Hedging Product – IRHP (swap, interest rate swap, cap, collar, structured collar, hidden or embedded swap etc..).
Some of these are reviewable (and to date – February 2014 – 96% ‘reviewed’ have been considered bad advice and compensation should be paid by the bank that sold it. If you fit in to this category then check what you should be doing here.
If you do not fit into the category of ‘reviewable loans’ then all is not lost and you should consider doing the following:-
1. Ask the bank which sold you the product to investigate the advice/product that you were sold. They must reply within 8 weeks of your request with either an initial response, a final response or a response that’eight weeks has elapsed and you now have the right to refer the matter to the Financial Ombudsman Service (FOS)‘.
2. Make a ‘subject access request‘ to the bank, get all your information, request copies of loan agreements missing bank statements, anything that you think will help to prove your case.
3. Submit a complaint to the Financial Ombudsman who can award compensation up to £150,000. The process can be lengthy, 1 year plus is not unknown. The FOS will make your bank aware of your complaint and this may get the bank to treat you more sympathetically until your case is decided.
4. Consider litigation (expensive), but there are Companies which offer ‘no win no fee’.
5. Lobby your Member of Parliament (MP), arrange a meeting with them to tell your story, try and get them to support EDM 874 which is designed to change the governments stance on the regulation of embedded interest rate swaps.
6. Contact the press to tell your story, bear in mind that you may not wish to do this if you are awaiting the outcome of a FOS complaint or are considering legal action. If you have already lost everything and are bankrupt, then you may not have any redress against the bank, so what have you got to lose by going to the Newspapers to tell your story?