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.