Barclays increase provision for interest rate swaps mis selling
Barclays have added a further £650m to its interest rate swaps compensation pot, according to reports this week.
This takes the lender’s total provision to £1.5bn.
Barclays was one of the four primary lenders ordered by the Financial Services Authority (FSA now FCA) to undertake a full review of its sales of interest rate swaps after its pilot scheme revealed nine of our ten cases failed to meet at least one regulatory requirement.
Despite this the majority of businesses are still to receive any redress.
Simon Cottrell, Senior Partner at Goldsmith Williams, comments:
“This increase in provision is just telling us what we already knew – that the interest rate swaps mis selling scandal is much larger than lenders would have has us originally believe.
“It is important that businesses do not fall foul of the presumption that this increase will improve their chances of receiving redress. The truth is lenders are not falling over themselves to pay compensation.
“Affected businesses are urged to seek legal advice. Without specialist representation businesses run the risk of losing out on their opportunity to claim altogether; the longer this drags on the higher the chance the statute of limitation will play a part.”
Content correct at time of publication