Interest Rate Swaps

BarrieNunn

Dear MoneySavingExpert & Users
I have two Clients each of whom finds themselves locked into an Interest Rate Swap Arrangement with a major Bank, taken out in 2003/2004, before interest rates fell off a cliff, which to my view are totally missold, and costing these poeple very significant amounts of money.
One case involves pay-outs totalling to date in excess of £100,000, on a contract completyed by FAX, entirely unregulated, sold as "the best thing since sliced bread" when rates looked to be rising, with absolutely NO "best-advice" as to risk, potential downside, examples of good & bad outcomes, suitability report, "treating customers fairly" service standards, and, seemingly NO WAY OUT, unless even MORE money is paid to the Banks - who continue to sell these things to people like my Clients - relatively unsophisticated property portfolio owners, with perhaps £2.5M in assets and £2M in BTL mortgage borrowings.
Has anyone any experience of these scandalous arrangements - some of which I know have been completed by telephone, with no cooling-off period, and seemingly under the FSA-radar?
One case has progressed to Barrister involvement, and I suspect no Bank will allow a case to come to Court, especially in light of gther recent huge success for MSE over PPI !!! But, I would value ANY feed-back, as to successes, failures, useful piinters, and helpful negotiations which have improved the lot of people caught up in this "yet-another" banking scam!!!
regards
Barrie

Annisele

I doubt the fuss over PPI will have much of an effect on a case about swaps

PPI was widely mis-sold to a large number of consumers. Given that swaps aren't sold to consumers all that often, they can't possibly have been widely mis-sold.

On the face of it, an interest rate swap might be of interest to a BTL investor with £2 million of borrowings. If their liabilities are all at a floating rate and they'd prefer to pay fixed (or vice versa), then that's the situation swops are designed for.

However, I suspect you won't get too much help here. This is a consumer website, and swops aren't (in my view) an issue that directly concern too many consumers.

Jared_Duffy

I am dealing with a number of clients who were sold rate swaps. I wonder if anyone has retained a copy of the charge which will have been signed in relation to the principal borrowing. If so would you be willing to pass a copy to me.

I am primarily concerned with 'floating charges' at this stage as I am trying to push a technical argument secondary to the 'swap' itself. Arguments in relation to the swap are many and varied and will follow the technical argument referred to above.

Any info would be greatly appreciated'

I am also more than willing to share information.

Cheers

Jared

castortroy31

Hi All...

has anyone had any progress on this?

i am getting a copy of the documentation soon so I wanted to know if anyone has successfully made a claim or not.