What to know about Interest Rate Swaps by Lee Lipson
Lee Lipson,a Litigation and Insolvency Partner at BPS Law LLP, with a niche in Insurance and Financial Mis-selling cases and expertise (including law changing cases) in bringing complex litigation against financial institutions, explains what you should know upon the Banks Mis-selling of interest rate swap products.
What is an Interest Rate Hedging Product (IRHP)?
An interest rate swap is, in its commonest form, an agreement between a bank and it’s customer, whereby the bank exchanges a fixed interest rate for a floating rate. The product is usually separate to a loan – the banks’ purpose is to ensure that a rise in interest rates will not lead to a customers borrowing costs rising to an unaffordable level.
However, and this is the crux of the “Interest Rate Swap scandal” whilst customers are well served by an interest rate swap when interest rates rise, they may be substantially out of pocket if rates fall – a fact which may not have been disclosed or an unrealistic impression given to the customer at the relevant time – interest rates have fallen massively since 2007/2008 when many interest rate swaps were imposed upon customers by banks..
Further, if customers choose to “exit” interest rate swap agreements they may face massive punitive break costs (or even worse!).
When is an IRHP not appropriate?
Many interest rate swaps imposed upon customers have been wrongly sold by the banks and this can result in customers having very valuable and substantial claims as a consequence of interest rates having fallen( and excessive interest rates having been paid) or the punitive nature of the break clause.
How long have I got to make a claim?
SO have you been subject to an interest rate swap imposed upon you by a bank? Have you paid excessive interest charges or been subject to a punitive break clause? If so you may have a very valuable claim against your bank..but time is running out ….you may be prevented from bringing a claim once 6 years have passed by.
How much will it cost?
Lee Lipson will meet with you ,without charge , and advise upon whether or not you may have a claim and,if so, whether redress should be sought through the courts or to the Financial Conduct Authority.
If you require further information before contacting lee Lipson ( on 0161 834 2623 or by email at firstname.lastname@example.org) then please read the information which can be found on the FCA website BUT PLEASE DO NOT DELAY ANY LONGER
Don’t delay – contact Lee Lipson on 0161 834 2623 or by email email@example.com
Please note that further information can be found on the FCA website from which some of the information on this Q and A has been taken.