The Times has announced
that thousands of small businesses will be told that they may have been mis-sold interest rate caps by their banks. This could potentially result in £1 billion in new compensation payouts.
“The Financial Conduct Authority is expected to say that between 5,500 and 6,000 businesses will be allowed to join its redress scheme for swap mis-selling, having been overcharged tens or even hundreds of thousands of pounds on ceilings to protect them against
interest rate rises.” Harry Wilson reported.
This decision to expand the review is reported to be announced alongside an FCA decision to extend the deadline to 31st March 2015 for the Interest Rate Hedging Product Review scheme. More details and a timeline of the review scheme can be found in the
Berg Banking Report.
Chairman of the All Party Parliamentary Group (APPG) on IRS mis-selling, Guto Bebb said that he was “bemused” by the change of approach, citing problems with the existing scheme.
“In effect, the FCA are instructing banks to offer them access to what we would consider to be a redress scheme that is not delivering,”
Following the House of Commons debate in December on the Financial Conduct Authority redress scheme, the APPG have now called
for further evidence to be submitted to the Minister.
Berg are encouraging clients to
download and complete the APPG case study template.
How to submit:
APPG have requested that these case studies are a concise chronology and no longer than 2 pages where possible.
All evidence case studies must be submitted to Economic Secretary to the Treasury, Andrea Leadsom MP by client’s respective MPs.
For more information about any of the above or for practical advice on this or any other aspect of banking and financial disputes, please contact the Berg Banking Litigation Team on 0161 829 2599 or email Alison Loveday at
(The information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Berg or any of its partners or employees. Professional legal advice should
be obtained before taking, or refraining from taking, any action as a result of this article.)