Interest rate swaps mis selling claims set to increase as Clydesdale and Yorkshire banks extend review
Interest rate swaps mis-selling claims may increase by tens of thousands after Clydesdale and Yorkshire banks announced plans to widen the products on which they may consider paying out redress.
Jointly-owned Clydesdale and Yorkshire will now take into consideration “the sale of certain TBL [tailored business loans] products” as part of the current review into the mis-sale of interest rate swaps.
The decision is likely to put pressure on other banks to do the same.
It is estimated that 40,000 small and medium businesses (SMEs) could have been mis-sold an interest rate swap product. However this news suggests thousands more SMEs may be entitled to redress as one industry observer remarks:
“If fixed rate loans become part of the official review then this will massively increase the potential compensation bill for the banks.”
Barclays have currently set aside £450m to cover the costs of mis-sold interest rate swaps claims. HSBC and Royal Bank of Scotland have also confirmed they have made certain financial provisions to cover claims.
However despite an investigation by the Financial Services Authority, there remains a high level of ambiguity surrounding who is deemed a “sophisticated customer” and those eligible for compensation. It is therefore essential for any SMEs affected by interest rate swaps to contact a qualified legal professional, such as Goldsmith Williams, to see if they could have a case for financial redress.
Content correct at time of publication