Over a fifth of swap claims are rejected
While February saw a record amount paid out to businesses affected by interest rate swaps mis selling, there are many SMEs who have had their hopes of redress quashed.
Since August 2013, 3430 customers have now received compensation after being mis sold an interest rate swap. However, at the same time, 962 (21.9%) have been rejected.
Simon Cottrell, Senior Partner at Goldsmith Williams Solicitors is understandably concerned:
“Much is being made of the record levels now being reached in the paid out of interest rate swaps redress. While it’s pleasing to see things moving in the right direction, given the snail’s pace in which payouts started it’s hardly surprising to see each month surpass the previous one’s endeavour.
“My concern however lies with the number of cases which are being rejected. Given the complexity around the product I am shocked by just how many businesses are seeing their claims dismissed.
“My fear is, without specialist and independent legal representation during the review process, businesses are leaving themselves exposed, vulnerable and entirely in the hands of their lender who, let’s not forget, mis sold the product in the first place.
“Businesses need to understand the FCA Review Scheme does not guarantee redress. A legal professional, such as Goldsmith Williams, can even the playing field. With an 82% success rate we can help ensure businesses recover the full extent of the swap including all payments made under it, consequential losses & any break costs.”
Content correct at time of publication