Sixth of SMEs yet to opt in to swaps review scheme
Many businesses may be suffering unnecessarily by not seeking redress for a mis sold interest rate swap.
According to figures from the Financial Conduct Authority (FCA), 3,700 of the 18,700 business customers asked to join its review scheme have yet to opt in. The regulator is now urging lenders to re-contact clients to try and encourage them to sign up.
Simon Cottrell, senior partner at Goldsmith Williams, is worried that, as the statute of limitation looms for many, businesses at running the risk of losing their right to claim:
“Whilst some businesses may have rightly instructed a specialised swaps lawyer and are making a claim directly instead of opting into the scheme, there will undoubtedly be many SMEs who are too busy treading water to have had the time or capacity to confront this desperate situation. They may even be in such dire straits that they are fearful of any communication they receive from their interest rate swaps lender.
“I appreciate some businesses are anxious about making a claim for interest rate swaps mis selling for fear it could jeopardise their relationship with the bank and future lending opportunities. However with so many on the financial brink such redress could be the difference between survival and closure.”
As of the end of December banks have paid out £158.6m to businesses mis sold an interest rate swap. 1040 offers have been accepted while 672 cases were rejected. In order to ensure your case has the best fighting chance make sure you have independent legal representation.
Click here for more information about interest rate swaps mis selling and how Goldsmith Williams can help you.
Content correct at time of publication