Lloyds Bank is one of the high street lenders making headlines again over claims regarding Lloyds interest rate swap mis-selling. Together with Barclays, HSBC and RBS, the Financial Ombudsman Service has ordered the banks to pay compensation to their victims.
Lloyds Bank is just one of several high street lenders facing thousands of new claims from small and medium-sized business owners over Lloyds interest rate swap mis-selling. This is due to the recent reversal of two decisions not to pay out compensation to the lenders’ victims by the Financial Ombudsman Service. Banks have been accused of failing in their duty of care to their customers and placing their profits before their corporate responsibilities by selling them interest rate swaps that have led many businesses to financial ruin during the interest rate drop of the ongoing recession.
The Financial Services Authority has launched a scheme to redress the interest rate swap mis-selling. So far, eleven banks, including Lloyds, have joined the scheme. Small business owners, however, have complained about the scheme, stating the process is still weighed in the lenders’ favour.
Nevertheless, the Ombudsman’s recent decision could open the flood gates on the number of claims disgruntled business owners may lodge, costing Lloyds and its contemporaries a small fortune, similar to the payment protection insurance (PPI) scandal. It is believed successful claims of Lloyds interest rate swap mis-selling and other major high street banks could be even greater than the PPI scandal, which has caused lenders billions in compensation to individuals.
Similar to how financially incentivized and over zealous sales agents mis-sold PPI to unknowing borrowers of loans and credit cards, so too, Lloyds agents did the same and so are responsible for Lloyds interest rate swap mis-selling. By choosing to incentivise its sales agents in the form of commissions, the bank failed in its responsibility for the financial advice it gave to its new and existing customers; consequently, the bank is now finding itself accused of Lloyds interest rate swap mis-selling and preparing to pay the price. While Lloyds has claimed it does not anticipate the compensation payment to be significant, nevertheless, there is no doubt there are many cases of Lloyds interest rate swap mis-selling and the bank will not be able to escape the same fate as Barclays, HSBC, RBS or any other of the implicated high street lenders.
It is estimated by the Financial Services Authority that over 40,000 interest rate swaps have been mis-sold to small and medium-sized businesses and, while not the main offender, Lloyds will have to answer to claims of Lloyds interest rate swap mis-selling. Already, an organization set up on behalf of the claimants has over 800 members and are growing daily. While the banks may be trying to downplay the number of current and prospective claims, there is no doubt this is a headache for the lenders that is growing daily.
Stellar Law is a firm highly experienced in identifying legitimate cases of Lloyds interest swap mis-selling and, in many cases, clients have been given poor financial advice and sold products that are not appropriate to their needs. Consequently, where we can see Lloyds has significantly failed in its duty of care to its clients, our lead council and barristers will initiate a claim for compensation due to Lloyds interest rate swap mis-selling on our client’s behalf.
If you are a customer of Lloyds and think you may have a valid claim, or for more information about Lloyds interest rate swap mis-selling, please do not hesitate to contact Stellar Law today on 0800 774 7400.
For more details please visit here: http://stellarlaw.com
New Wave of Claims of Lloyds Interest Rate Swap Mis-selling