If you are a small or medium-sized business in the UK, you may have consolidated your borrowing under a single commercial loan with the Royal Bank of Scotland (RBS). If this is the case, it is highly likely you were mis-sold an insurance hedge product and, with the drop in interest rates, due to the recession, now find you are a victim of the RBS interest rate swap mis-selling.
At the time of taking out their commercial loan, many business owners were not advised by RBS as to the pros and cons of how this loan and the accompanying interest rate swap hedging contract worked together, especially in the event of a rise or fall in interest rates. Due the unprecedented economic recession the UK is still experiencing, interest rates have remained at an all time low, which has resulted in many business owners discovering
they are tied into a product that not only fails to protect them, as promised, but is actually financially detrimental. This failure by the bank to adequately inform its clients of the advantages and disadvantages of this financial product is one of the key factors that determines if there are grounds for compensation due to the RBS interest rate swap mis-selling.
So what exactly is the RBS interest rate swap mis-selling? If one of the bank’s sales agents recommended you commit to a hedging product that was much greater in value than the amount you were needing to borrow, then you are probably now a victim of the RBS interest rate swap mis-selling. In addition to this, if you were advised by the sales agent to take out a hedging product that was for a period longer than the loan, you are more than likely eligible for compensation due to the RBS interest swap mis-selling.
Incentivising sales agents to sell financial products in now common practice in the banking industry; however, receiving commission for selling interest rate swap products, on top of a wage packet, serves as motivation for a sales agent to close a sale, regardless of what may be in the best interest of the customer. Where this has occurred, numerous cases are now coming to light of the RBS interest rate swap mis-selling to its customers, where the bank has failed to ensure its employees were complying with the bank’s duty of care.
Where any representative of RBS has not sufficiently explained to a business customer the features of a hedging product, nor detailed the consequences should interest rates rise or fall, then our legal team at Stellar Law is confident of a ruling of ‘non-compliance’ by the lender and a clear case of compensation for the customer on the grounds of the RBS interest rate swap mis-selling.
If, after reading this article, you suspect you have may have a claim as a result of the RBS interest rate swap mis-selling, our lead council and barristers at Stellar Law will be able to assess your case and advise you as to whether you may be eligible for compensation. To lodge a claim, or for more information on the RBS interest rate swap mis-selling, please contact Stellar Law on 0800 774 7400.
For more details please visit here:- http://stellarlaw.com
Is Your Business a Victim of the RBS Interest Rate Swap Mis-