Last week we provided an update on the Financial Services Authority’s review into the mis-selling of interest rate swap agreements.
Business Secretary Vince Cable has now said up to 100,000 firms could have been mis-sold interest rate swaps and UK lenders are expected to face a compensation bill of at least £1 billion as a result of the “terrible scandal”.
The review published by the FSA found more than 90% of small firms had been mis-sold complex interest rate swap agreements.
The FSA looked at 173 cases where interest rate swaps had been sold to small firms as part of a pilot study and said a “significant” proportion were likely to result in redress being due to the customer.
Tory Guto Bebb, MP called for clearer rules about which firms would be eligible for compensation.
“The FSA redress scheme for businesses mis-sold interest rate swap products excludes those businesses which had a live swap valued in excess of £10 million.
This is despite the fact that those businesses would otherwise be categorised as unsophisticated by the FSA’s own rules.”
If your business has been mis-sold an interest rate swap agreement, contact us now on 0116 266 5394 for a no obligation discussion.
Frances Jacobs is one of our Solicitors in Leicester, who are all experts in their fields and dedicated to quality client care. If you would like to find out more about our solicitors in Leicester please contact us.
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