SMEs warns about SWAPs ‘fact find’ meeting
Following the Financial Services Authority (FSA now FCA) discovery of ‘serious failings in the sale practice of interest rate swaps’, lenders have begun to contact clients in writing to inform them of their plans of investigation.
While this would appear a positive step forward, legal specialists are warning small and medium sized businesses of the potential dangers that lie behind these apparent olive branches.
Potential claimants will be contacted by their lender confirming it is investigating all claims. Following the initial investigation claimants should be contact again with details of its lenders preliminary findings.
At this stage you may be invited to a meeting disguised as a ‘fact find’; the name suggesting the lender is trying to collate as much information as possible. However such a meeting is in fact ‘on the record’ and therefore could put you at further risk.
It is essential to have a specialist solicitor present when the meeting takes place. By attending the meeting alone you run the risk of responding to a question, which unbeknownst to you, could provide the lender with ammunition to counter your claim. Having legal representation can help ensure you are not left legally exposed.
Content correct at time of publication