MSE News: Banks guilty of mis-selling to small businesses

Former_MSE_Helen

"Barclays, HSBC, Lloyds and Royal Bank of Scotland have agreed to compensate customers in the latest scandal..."

Read the full story:
Banks guilty of mis-selling to small businesses

Wywth

Will MSE be providing us with an easy step by step guide on how to reclaim, like with the other recent mis-selling scandals such as PPI ?

I'd like to get in before the rush.

cavework

Know what? ..No surprise here .
and we have the answer to as to why so many small businesses have failed in the UK..
They don't stand a chance .. Big companies are let off from tax due .. go into admin owing the smaller Companies money .. the loosers are the small companies. All they can claim back is a tax relief and VAT 6 months later.
But it is the small Companies that if you put them together contribute a huge amount to the economy and employment.
The Government are overlooking this and it will come back to bite them.
Compensation makes no difference to someone who ran their own business but has had to close down due to this bunch of RIP OFF merchants ..
Nothing will compensate for these people loosing their income

Ann1952

I signed up to this type of rate swap loan in 2007 with Barclays. I watched interest rates plummet and my costs rise. The arrangement was so difficult to understand it seemed to be in another language, even my very experienced accountant could not make sense of how it worked. My understanding was that if interest rates rose I would be protected but if they went down I would benefit. But this was not the case. When I tried to exit I was quoted an exit cost of over £100,000 which of course I could not afford. I have had to stay with it whilst Barclays get richer I get poorer. Shame on Barclays, the bank I trusted and the bank I have been with for over 30 years.

cavework

Ann1952 wrote: »

I signed up to this type of rate swap loan in 2007 with Barclays. I watched interest rates plummet and my costs rise. The arrangement was so difficult to understand it seemed to be in another language, even my very experienced accountant could not make sense of how it worked. My understanding was that if interest rates rose I would be protected but if they went down I would benefit. But this was not the case. When I tried to exit I was quoted an exit cost of over £100,000 which of course I could not afford. I have had to stay with it whilst Barclays get richer I get poorer. Shame on Barclays, the bank I trusted and the bank I have been with for over 30 years.

Perhaps now this has been highlighted people like you will get a fair chance.. I really hope so.
We were offered this when a PLC company suddenly went into liquidation owing us thousands. Without the loan we would have had to close but our accountant dealt with Barclays and refused this deal..
We still got the loan and are still paying it off but thanks to our accountant it only has 12 months left to run (although the interest rate is extortionate)

justride

I run a small engineering business in the west midlands - My bank is Barclays I've been with them 22 years since I started my Company.

I've always had either an overdraft or business loan in operation and we've purchased company cars through their asset finance schemes.

In 2007, when thing started getting sticky Barclays made it clear to me that they wanted my 25K overdraft facility changed to a Bank Loan with my house as security. The interest rate was to be 18%

It was Hobsons Choice - at that time no other bank was lending, Barclays saw the opportunity and went for it.

So I would strongly advise any small business NOT, under any circumstances, to consider using Barclays Bank. They will screw you and in addition even after 22 years they still don't know what we do !

Sledgehead

justride wrote: »

....
In 2007, when thing started getting sticky Barclays made it clear to me that they wanted my 25K overdraft facility changed to a Bank Loan with my house as security. The interest rate was to be 18%

It was Hobsons Choice - at that time no other bank was lending, Barclays saw the opportunity and went for it.!

They smelled blood and they went for it. I suggest you do the same. Sign the e-petition calling for an inquiry.

e-petition

camkick

Can some one tell me where to find out how to reclaim IRSA

siwelnitramrm

Do a search on Resolute - Consulting or #IRSACLAIM

They a company working with James Ducker who Blew the whistle on the whole scam on sky news.

sainthalo

camkick wrote: »

Can some one tell me where to find out how to reclaim IRSA

It's not like PPI where you can just fill in a form.

There is no formula approach you can follow. This isn't really something you can do alone without experts but you can try with the Financial Ombudsman Service or the Bank/FSA scheme but note anything you say will be turned around and used against you if it possibly can be!

Best thing to do is read up further on the following websites::money:

http://www.nabcustomersupportgroup.com/
http://www.vedantahedging.com/
http://lexlaw.co.uk/practice-areas/interest-rate-swap-mis-selling-solicitors/
http://www.ibtimes.co.uk/articles/383888/20120913/misselling-derivatives-irsa-barclays-hsbc-rbs-lloyds.htm

HelenR1987

Sorry to bump an old thread but I found this infographic which I thought was brilliant

http://www.interestrateswapadvice.com/interest-rate-swaps-infographic.aspx