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Sold an IRS when taking out a mortgage.

Hi All,
I don't know if anyone has seen this at all before. I know that it was raised on the BBC banking TV programme recently but am unsure where to go next or whether there is a possibility of a claim or not.
in 1991 my parents took out a very large loan for about 100,000 k ish to buy a restaurant now as a part of this the bank convinced my parents to take out a short term IRS/Interest rate swap.
This was to protect against the changing rates in base rate and every month my parents paid approximately 373 pounds until the swap had ended.
I spoke to my parents at length about this and I will try to write down some of the financial s here but I believe the following.
There was no need for them to be entered into this swap as they were told or lead to believe that if they didn't enter this swap the loan would not have been available.
Has anyone actually complained and received any compensation from this?
I do realise this was over 20 years ago but just wanted to confirm if there was any recourse to what had happened.
Many thanks,
Cas

Comments

  • Wywth
    Wywth Posts: 5,079 Forumite
    Hi All,
    I don't know if anyone has seen this at all before. I know that it was raised on the BBC banking TV programme recently but am unsure where to go next or whether there is a possibility of a claim or not.
    in 1991 my parents took out a very large loan for about 100,000 k ish to buy a restaurant now as a part of this the bank convinced my parents to take out a short term IRS/Interest rate swap.
    This was to protect against the changing rates in base rate and every month my parents paid approximately 373 pounds until the swap had ended.
    I spoke to my parents at length about this and I will try to write down some of the financial s here but I believe the following.
    There was no need for them to be entered into this swap as they were told or lead to believe that if they didn't enter this swap the loan would not have been available.
    Has anyone actually complained and received any compensation from this?
    I do realise this was over 20 years ago but just wanted to confirm if there was any recourse to what had happened.
    Many thanks,
    Cas

    https://forums.moneysavingexpert.com/discussion/3225532
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