Claiming for a mis sold tailored business loan
While not included in the Financial Conduct Authority’s (FCA) review, small and medium-sized enterprises (SMEs) could still be able to recover any break costs or escape their loan without incurring the exorbitant charges.
Tailored business loans may not have been directly affected by interest rates in the same manner as rate swaps, given some of the similarities between the sales practices of the two products affected businesses may have the right to make a claim as Senior Partner, Simon Cottrell, explains:
“We are already in the process of litigating a number of cases for mis sold tailored business loans which, in our experience, typically masqueraded as standard fixed rate loans.
“But while a fixed rate loan has a break cost of around 1 or 2 per cent of the loan, SMEs with a tailored business loans would suffer a far more significant charge – often up to 50% of the original loan amount.
“If this was not explained, as was in many cases of interest rate swaps, then affected businesses could be eligible for redress, if they have paid the break costs, or be able to terminate the loan without facing such ridiculous charges.
“While others in the legal sector may be reluctant to take on such cases, we continue to look to help clients with tailored business loans with litigation the primary option for affected clients.”
Content correct at time of publication