Banks hoping for SME disinterest in consequential loss claims
Lenders may have set aside close to £3billion to cover the cost for mis sold interest rate swaps claims but this provision is just for the actual price paid for the product and not the ongoing consequential losses of the loan.
With the expectation of RBS who confirmed it had not made any provision for consequential losses, banks have stayed somewhat quiet on the topic other than to blame them for the delay to redress.
Simon Cottrell is a senior partner at Goldsmith Williams whose team of swaps lawyers are helping affected SMEs recover the full cost of mis sold interest rate swaps. He believes lender’s silence speaks volumes:
“Consequential losses are fast becoming the elephant in the room and there is a real belief amongst sceptics that lenders are hopeful that by keeping schtum on the subject then the problem will just disappear!
“We now understand that customers will receive 8 per cent interest on top of their redress payment. The FCA has even been as bold to say that this ‘bonus’ could mean victims of mis sold interest rate swaps would not need to claim for consequential losses.
“We couldn’t disagree more; businesses deserve every single penny of redress particularly as in many cases 8 per cent interest will fall pitifully short of the actual losses incurred.
“Clients of Goldsmith Williams will not fall victim of this latest tactic. Our team of experienced swaps lawyers will do everything they can to ensure businesses recover the true cost of the swap. This is one elephant that won’t go away. “ Consequential losses include loss of profits, loss of interest, bank charges, litigation fees and missed opportunities for the business such as expansion.
Content correct at time of publication