WIGAN lawyers have set up a specialist division to handle financial miss-selling.
The Commercial Litigation Team at Greenhalgh Kerr in Beecham Court, Goose Green, has established a unit to assist clients wishing to pursue claims against their banks for miss-sold interest rate swaps.
The unit was set up in response to an increasing demand from clients who have found themselves locked in to complex fixed interest rate products sold to them by their bank, usually prior to the financial crisis in 2008.
The interest rate products, usually attached to existing loans from the banks, were sold as providing protection for businesses against future interest rate rises.
They are commonly known as “swaps, caps or collars.”
The Financial Services Authority recently announced a scheme, in conjunction with four of the main banks, which provided for the banks to contact any customers affected and offer “fair and reasonable” recompense if it was considered that those products were miss-sold or in some other way inappropriate for the business concerned. From 2005 onwards, the banks were encouraging businesses to sign up to such deals, in order to limit the effects of instability in the economy.
And bank employees were under considerable internal pressure to get customers signed up to the deals.
Greenhalgh Kerr say they are able to advise on how to take advantage of the FSA approved review, whether clients have received a fair offer from their bank or otherwise.
And how to challenge the bank if clients find themselves locked in to one of these products.
Most actions will have a cut off period of six years from when the product was sold, so it is important to act quickly.
Greenhalgh Kerr’s legal team will review cases free of charge and advise on how best to get out of the product.
And then seek compensation from the bank.
The Head of Litigation at Greenhalgh Kerr Warren Usden said: “Businesses have no reason to be embarrassed about admitting that they did not take advice before entering into these highly complex financial products.
“Some of them can be quite complicated where even professional advisers would be unable to give the detailed advice required.
“Although these products were right for some companies they were not right for others, and there is help out there if you feel you are currently trapped or overburdened.”