Average consequential loss payouts ‘aren’t adding up’ says senior partner
Latest figures have shown the average payout for consequential loss claims is just £1800. The news has left industry experts, utterly bewildered and Simon Cottrell, Senior Partner at Goldsmith Williams, is urging businesses not to be deterred or misled by this small figure:
“Consequential losses have been regularly cited as the complex part of claiming for mis sold interest rate swaps. In fact they were largely blamed for the length of time it was taking to payout compensations resulting in the FCA and lenders agreeing to split the process into two parts so businesses could at least recover some of the damages enforced on them in a reasonable time.
“Consequential losses include loss of profits and interest as well as bank charges, litigation fees and missed business opportunities. Therefore they are bespoke to each individual business and not all that easy to calculate. That said it doesn’t take Rachel Riley to realise something isn’t adding up here so you can’t help but wonder if these claims are being given the attention they deserve or whether are lenders using the ambiguity of these costs to their advantage and, once again, hoodwink customers?
“We know businesses have been always discouraged from reclaiming consequential losses; that’s why lenders offer 8 per cent interest on top their initial redress payments to avoid having to deal with these, potentially much larger, claims. I can’t help but feel these low figures are another attempt to prevent businesses from ‘bothering’ to make a claim but the fact remains people have lost revenue, some even their business in its entirety, and without question deserve to recover every penny of their swap.
“Given all of this it is even more crucial for businesses to obtain independent legal advice when making a claim for consequential losses. Our team can help those considering a claim and even businesses who have had a consequential loss claim rejected by their bank.”
Content correct at time of publication