Interest rate swap redress delays are holding back economic recovery
Not only are lenders creating further damage to affected businesses by delaying compensation for interest rate swaps mis selling, they are also limiting reinvestment opportunity which, in turn, is holding back a wider economic recovery, claims campaign group Bully Banks.cc
Both the banks and the Financial Conduct Authority (FCA) have come under fire surrounding delays after took over a year for the first businesses to receive redress for a mis sold interest rate swap.
Delays have been blamed on the complexity of the vetting procedures and calculation of consequential losses – a process which could take “months or even years”.
“Many businesses simply don’t have that long,” comments Simon Cottrell, Senior Partner at Goldsmith Williams.
“Businesses have been living with the shackles of interest rate swaps for long enough. The prospect of year-long delays is ridiculous and will undoubtedly result in many businesses buckling under these severe financial pressures.
“We are fortunate that we have already started to receive offers of compensation on behalf of clients. In regards to one case, Barclays admitted liability and made an initial offer of redress in a matter of weeks. This is a much more acceptable timeframe.”
Content correct at time of publication