Over the course of the past few years, there has been considerable controversy over the financial mis-selling at UK banks.

Many small and medium-sized businesses were sold interest rate swaps, caps and collars and other derivative products.

Financial institutions stood to make significant amounts of money from the sale of these products and persuaded a large number of companies to enter into these arrangements.

Often the product was sold by a bank as a condition of granting a loan to a SME and staff have subsequently faced criticism for not advising businesses about the risks involved.

Interest rate swaps

The interest rate swap agreements (IRSAs) scandal is one of the most notorious mis-selling issues, significantly impacting many SMEs.

These products, marketed as safeguards against high interest rates, often came with insufficient explanations of the risks if rates remained low, leading to severe financial distress for numerous businesses and, in some cases, closures.

Financial institutions have faced criticism for inadequately clarifying the connection between loans and swaps, as well as failing to transparently communicate exit charges.

Making a claim

The Financial Conduct Authority estimates that 28,000 swap agreements were mis-sold to UK businesses by the ‘Big Four’ banks.

If your business was mis-sold a product, our experienced solicitors can help you explore your legal options and work towards the best outcome.

Please get in touch for our assistance, we will be happy to help.

Your Key Contacts

Seamus Smyth

T: 020 7406 1000

E: SeamusSmyth@cartercamerons.com

Seamus Smyth is head of litigation and arbitration. His practice is primarily commercial with an emphasis on arbitration, financial services and work for South African and Italian clients.

Transactions

His reported cases include RH Green & Silley Weir v BR (limitation period against 3rd party), de Bry v Fitzgerald (security for costs), Hartt v Newspaper Publishing (libel concerning a work by Michelangelo), Pearson v Sanders Witherspoon (valuation of loss of chance), Siebe Gorman v Pneupac (status of consent orders), Senate Electrical v NTL (liability of an employee for acquisition warranties) and Bendell v Smith & Others (a successful recovery action by a lender on a shared appreciation mortgage equity release – the only such case to go to trial).

Recently involved in enforcement of foreign arbitration awards, claims arising from the banking upheavals since 2007, a successful claim against a high street bank resulting from a banking error and a successful claim against estate administrators and their solicitors for wasting the estate funds on irresponsible litigation.

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Educated (BA, LLB, Wits) and first qualified as an attorney in South Africa, he requalified in England in 1977, took an LLM at UCL and a Diploma in International Arbitration at QM, and became an FCIArb. He is chairman of the British South African Law Association (for the second time), chairman of Michaelhouse UK Trust, chairman of Global Leadership Foundation (UK), a former President of the London Solicitors Litigation Association and Trustee and President of Town Malling Cricket Club (established in 1827!).  He was until 2012 a Visiting Senior Lecturer in International Commercial Arbitration at London Metropolitan University.  When work and domesticity permit he plays some cricket and more golf (but – which is immediately obvious – not nearly enough).