SMEs must seek specialist legal advice to recover damages for mis sold swaps
Small and medium sized enterprises (SMEs) mis sold interest rate swaps are being urged to retain specialist legal representation and not fall victim to under qualified claims management companies (CMCs).
Following the results from the Financial Services Authority interest rate swaps pilot scheme, there are fears that CMCs, whose experience does not span beyond payment protection insurance mis selling, may look to capitalise on this vulnerable market.
There is little comparison between the two markets. There are very clear markers in regards to PPI mis selling. However, even following the compelling evidence in the FSA pilot scheme, the complexity surrounding interest rate swap products makes it a far more specialised area.
Simon Cottrell is a senior partner at Goldsmith Williams and a specialist litigation solicitor:
“We all had high hopes that justice would prevail following the staggering results of the FSA pilot scheme and that the businesses affected would be adequately compensated.
“This, however, is not the case and SMEs, left with more questions than answers, could now fall victim again by turning to a non-specialist claims management company.
“The best way for SMEs to gain access to justice and secure compensation which adequately addresses the damage this latest mis selling scandal has brought is to seek specialist legal representation and quickly. The statute of limitations will soon start to impact on the claims of some of these businesses – affected business owners should instruct a lawyer without delay.”
The FSA pilot scheme found that nine out of 10 swaps cases failed to meet regulatory requirements and, as a result, would be eligible for some degree of redress. However a lack of clarity surrounding timeframes as well as an apparent reluctance from the FSA to provide any transparency in compensation levels has kept SMEs in the dark.
Contact Goldsmith Williams’ dedicated department for specialist legal advice on interest rate swaps mis selling and give your business the best chance of securing compensation.
Content correct at time of publication