SMEs: Don’t be fobbed off with replacement products
Having already been dealt a devastating hand by interest rate swaps mis selling, businesses are now seeing their compensation significantly reduced as lenders offer replacement products as part of their redress package instead of financial compensation. Senior partner, Simon Cottrell, wants businesses to know they don’t have to accept these flimsy handouts:
“One of the reasons we are in the mess is because businesses felt under pressure to take out an interest rate swap product and now it appears we are living through groundhog day with lenders again failing to put the needs of their clients ahead of their own.
“While in some cases an alternative product may be of benefit to a business it is certainly not applicable across the board and any business that has been offered a replacement product as redress does have the right to challenge it.
“We are already fighting on behalf of many businesses offered this withering olive branch and are demanding that banks provide firm proof as to why an alternative product is appropriate as well as how they have calculated it.
“We are urging all businesses offered an alternative product to seek legal representation. If they don’t I predict we’ll find ourselves right back here with another mis selling scandal to deal with. It’s all just a little bit of history repeating and instead I prefer lenders to listen to a different Shirley Bassey song – Hey Big Spender – and spend some time focusing on what is best for their clients.”
Content correct at time of publication