A review by the FSA has highlighted a number of banks, including Barclays, Lloyds, HSBC and RBS, who may have mis-sold interest rate hedging products, principally to small and medium sized businesses (SMEs).
Interest rate hedging products were developed to protect borrowers against the risk of interest fluctuations. These products take several different forms, such as:-
Interest rate swaps – that “fix” the interest rate
Interest rate caps – that cap rises in interest rates
Interest rate collars – that limit interest rate rises within a simple range
Interest rate structured collars – that limit interest rate rises within a more complex range
The banks are bracing themselves for an avalanche of claims. Barclays for instance has reputedly put aside £450 million to cover their exposure.
Emma Slade, a professional negligence solicitor, specialises in these mis-selling claims. Lee Dawkins at our Taunton office is also part of the interest rate swap claim team.
If you have been sold one of these products and would like to know where you stand then call our new helpline FREE on 0808 139 1593.
Alternatively, you can email Emma or Lee direct at:-
And for those who would prefer a more traditional face to face meeting we can see you at any of our offices in Devon and Somerset: Barnstaple, South Molton, Bideford, Taunton and Braunton.