40,000 interest rate swap agreements may have been mis-sold to small businesses in 2001
The Financial Conduct Authority (FCA) have estimated that in 2012, up to 40,000 interest rate swap agreements may have been mis-sold to small businesses in 2001.
Businesses were sold the financial swap products to protect them against fluctuations interest rates and allow them to stay on a fixed rate for an agreed period of time. However, during the recession, the fixed rate didn’t change to meet the new, much lower rates which meant that busses were paying higher levels and lost a great deal of money.
Companies who have been affected believe that they were under-compensated and treated unfairly by their banks. In 2016, three firms took their claims to the High Court but were rejected. The firms have now joined forces and gone to the High Court to re-open their cases.