RBS leading way in interest rate swaps claims
The Royal Bank of Scotland (RBS) appears to be the largest perpetrator of mis sold interest rate swaps claims, latest figures have revealed.
According to the Financial Conduct Authority (FCA), RBS currently faces 10,528 cases for the alleged mis selling of rate swaps. Barclays and Lloyds both have in excess of 3,000 cases while Lloyds are just shy of 2,700.
Yet despite these growing case loads, only 10 businesses (0.03%) have received any form of redress, prompting a swathe of criticism of the FCA; Bully Banks accusing the regulator of being “led by the nose by the banks” and failing in its duty to regulate them effectively.
It is believed banks have collectively employed 2,800 new staff to review more than 30,000 cases. As a result the FCA expects the majority of SMEs will be told about the results of their review by the end of the year, with any redress coming at a later date
However for some any delay could see them losing their right to claim forever as Simon Cottrell, Senior Partner at Goldsmith Williams Solicitors, explains:
“We have always said a fundamental flaw of the FCA review scheme is its lack of deadlines which has allowed lenders to drag their feet when contacting affected businesses - a tactic which, should it continue, will cost many their right to claim altogether.
“Intended to award justice to victims of interest rate swaps mis selling, the scheme could in fact do more damage than good. SMEs are now under the belief no action is required on their behalf and that lenders will automatically review their case and contact them with the results. Many remain oblivious that should the claim become time barred beforehand they will lose their ability to claim.
“Affected businesses must be proactive in their approach and seek specialist legal representation as soon as possible to ensure they give themselves a fighting chance of receiving access to justice and fair and adequate redress.”
Content correct at time of publication