Interest rate swaps payouts start to trickle in
It has taken over a year but the first compensation payment for a mis-sold interest rate swap has finally been made. However Senior Partner at Goldsmith Williams, Simon Cottrell, is quick to dispel any unfounded optimism that affected businesses can expect a payout in the near future.
“The fact that it has taken over a year for even one business to receive redress for a mis-sold interest rate swap is outrageous. But what is more frustrating is that lenders have been allowed to get away with this behaviour, something we expect they are likely to continue to do for as long as they can.
“The apparent cause for these significant delays is the complexity of the vetting procedures and calculation of consequential losses. We therefore applaud Santander for bucking this trend by repaying one business the direct cost of the swap in the first instance and consequential losses separately even if it was due to the apparent intervention of the former home secretary, Jack Straw.
“Yet even despite this small step forward, affected businesses remain at real risk. We have had a flurry of enquiries of late from businesses who, having attended a meeting with their lender or its independent reviewer alone, have unwittingly damaged their chance of receiving redress. We therefore stay true to our original stance and urge businesses, even in spite of this seemingly positive news, to seek specialist legal representation.”
Content correct at time of publication