England 12/08/2013 – Despite the fact that about £2bn of interest rate swaps were sold, very few businesses have begun a claim
The vast majority of the UK companies who were sold interest rate swaps had them pitched to them between 2006 and 2008. Given that a claim based on one of these contracts has to be started within six years of the date that the contract was entered into, it seems that may firms have missed the window of opportunity to make a claim.
In most cases, a firm that signed their contract in mid 2007 has already missed the chance to make a claim. When the FSA reviewed these products, they determined that 90% of the files they looked at involved some element of misselling. Therefore, it is logical to conclude that 90% of the firms who bought these products could have some sort of legitimate claim.
Exact figures about claims rates are yet to be released
Figures on exactly how many firms have logged a claim have not been collated and released. However, companies who specialise in dealing with these kinds of claims know that only a tiny percentage of firms with legitimate claims have started proceedings. Many of those who have made a claim have found the process of getting compensation too long and tedious, which may be part of the reason other firms have taken steps to claim back losses. The fact that some companies have lost their cases may also be putting firms off, but there are plenty of examples of businesses wining their cases too, so few believe this is why so few have started the claims process.
Many who offer advice to firms affected by the misselling of these products like Berg Interest Rate Swap Advice Service believe the true picture will only be seen once the claims figures are released. It is said that Vince Cable had asked The Financial Conduct Authority (FCA) to publish the figures connected to the redress for interest rate swaps mis-selling. He has also said that he wants to see banks settling claims far faster than they are now. Many in the legal profession believe that once the figures are published and the claims process speeds up more firms will be motivated to file a claim.
Contact:
Berg Solicitors
35 Peter Street, Manchester
United Kindom
Zip: M2 5BG
Tel: 0161 833 9211
Email: Online form
Web: http://www.interestrateswapadvice.com/
