Court ruling means RBS will face swaps law-suit
The Royal Bank of Scotland faces legal action after an alleged victim of interest rate swaps mis selling was given the right to pursue a claim despite his company being in administration.
Michael Hockin is the former owner of London & Westcountry Estates (LWE). He was sold a swap back in 2008 when taking out a loan of £57million with RBS. He alleges not only was he completely unaware of the £11million break cost of the swap but that the business also lost £5million in consequential losses.
Two years ago Ernst & Young were appointed administrators of LWEs after the company was first put into RBS’ global restructuring group before having its debt sold to Blackstone as part of an asset sale. The administrators however seemed uninterested in making a claim for interest rate swaps mis selling. As a result Mr Hockin successfully applied to the courts for the right to take on RBS himself.
Proceedings against the high street lender have now been issued.
Simon Cottrell is the senior partner at Goldsmith Williams Solicitors. The firm is helping businesses affected by interest rate swaps mis selling:
“We are really pleased by the court’s verdict to allow Mr Hockin to pursue a claim.
“We all know the crippling effect these complex products have had and are still having on businesses, many of whom are being pushed to the brink of bankruptcy. To deny a business the right to redress when, quite possibly, the reason behind their demise is due to the sale of a swap would be totally unjust and, in effect, let lenders off scot-free.”
RBS denies any wrongdoing.
Content correct at time of publication