Bournemouth firms step up fight against interest rate mis-selling

AGGRIEVED small businesses are stepping up their fight for justice from banks accused of interest rate mis-selling.

More than 120 local business owners attended the first Bully-Banks regional conference at the Trouville Hotel in Bournemouth to air their grievances and hear about the campaign to end the scandal.

The mis-selling involves Interest Rate Swap Agreements (IRSAs), a complicated form of derivative sold to small and medium-sized businesses.

Often known as ‘interest rate protection’ they were sold by the UK’s biggest banks on the basis they would protect them from a rise in interest rates.

However, due to the complexities of the product, the customer was often unaware of the significant risk they were taking on.

And some claim they were not given a choice as the product was made a condition of their continued lending.

Bournemouth West MP Conor Burns, Poole MP Robert Syms and Romsey MP Caroline Nokes also attended the conference.

They heard Jeremy Roe, chairman of Bully-Banks, claim that high street banks were being wilfully slow in settling interest rate mis-selling cases.

The Financial Services Auth-ority announced in June that it had found serious failings in the sale of IRSAs to small and medium sized businesses.

Barclays, HSBC, Lloyds and RBS have all agreed to provide appropriate redress where mis-selling has occurred but no cases have yet been settled.

Mr Roe said: “Small businesses are still suffering crippling monthly penalty charges or excessive break charges under IRSAs which they simply cannot afford.

“Every month without resolution condemns more business men and women to hardship.”

Mr Burns said he had sympathy for the campaign. “These are people who were sold products they didn’t need and that are now, in some cases, crucifying their businesses.

“It’s another example of the power of banks over ordinary people and, unfortunately, the FSA are dragging their feet over this.”

Comments (6)

Please log in to enable comment sorting

6:55pm Thu 27 Dec 12

tracy m says...

Good to see our local MP's
supporting these local businessmen fighting for fairness and justice.

I have heard that many businesses have been forced into administration already as a result of the process of deceit in which the banks imposed these products on small business owners.
Good to see our local MP's supporting these local businessmen fighting for fairness and justice. I have heard that many businesses have been forced into administration already as a result of the process of deceit in which the banks imposed these products on small business owners. tracy m

12:04pm Fri 28 Dec 12

HRH of Boscombe says...

I think these businesses should have some responsibility for buying something they have not investigated.
.
Swaps are not complicated and they didn't have to buy them. Banks and any businesses these days try to sell you stuff you don't want or need all the time. Some businesses have probably benefited from swap agreements.
.
Simply you should never get involved in the derivatives market unless you know it and the products inside out.
I think these businesses should have some responsibility for buying something they have not investigated. . Swaps are not complicated and they didn't have to buy them. Banks and any businesses these days try to sell you stuff you don't want or need all the time. Some businesses have probably benefited from swap agreements. . Simply you should never get involved in the derivatives market unless you know it and the products inside out. HRH of Boscombe

12:05pm Fri 28 Dec 12

HRH of Boscombe says...

HRH of Boscombe wrote:
I think these businesses should have some responsibility for buying something they have not investigated. . Swaps are not complicated and they didn't have to buy them. Banks and any businesses these days try to sell you stuff you don't want or need all the time. Some businesses have probably benefited from swap agreements. . Simply you should never get involved in the derivatives market unless you know it and the products inside out.
And the underlying issue.
[quote][p][bold]HRH of Boscombe[/bold] wrote: I think these businesses should have some responsibility for buying something they have not investigated. . Swaps are not complicated and they didn't have to buy them. Banks and any businesses these days try to sell you stuff you don't want or need all the time. Some businesses have probably benefited from swap agreements. . Simply you should never get involved in the derivatives market unless you know it and the products inside out.[/p][/quote]And the underlying issue. HRH of Boscombe

8:21pm Fri 28 Dec 12

HRH of Boscombe says...

I made earlier comments I stick to but on deeper thought I believe these businesses do have a case but a different case.
.
Generally an interest rate swap is two legs. One holds a fixed rate for a period and the other party hold a rate generally following LIBOR. After that period they swap interest rates.
.
If the same banks have been collaborating on LIBOR its mass theft, fraud and deception
I made earlier comments I stick to but on deeper thought I believe these businesses do have a case but a different case. . Generally an interest rate swap is two legs. One holds a fixed rate for a period and the other party hold a rate generally following LIBOR. After that period they swap interest rates. . If the same banks have been collaborating on LIBOR its mass theft, fraud and deception HRH of Boscombe

8:41pm Fri 28 Dec 12

The mentalist says...

HRH of Boscombe does not understand. The banks targetted unsophisticated customers like us. We support people with MH and LD problems, never heard of IRSA until years after the "sale". They didn't say they were selling anything, we trusted the bank like we would trust our GP. Nothing was put in writing, it was a complete scam.
HRH of Boscombe does not understand. The banks targetted unsophisticated customers like us. We support people with MH and LD problems, never heard of IRSA until years after the "sale". They didn't say they were selling anything, we trusted the bank like we would trust our GP. Nothing was put in writing, it was a complete scam. The mentalist

8:51pm Fri 28 Dec 12

The mentalist says...

Every respect for HRH of Boscombe, but saying that "..SWAPs are not complicated.." in his first comment is not only wrong, he goes some way to proving that in his second comment. Even now, with a specialist solicitor acting for us, the explanation of "two legs" is new to me, and I personally had never heard of LIBOR until the recent scandal.
Every respect for HRH of Boscombe, but saying that "..SWAPs are not complicated.." in his first comment is not only wrong, he goes some way to proving that in his second comment. Even now, with a specialist solicitor acting for us, the explanation of "two legs" is new to me, and I personally had never heard of LIBOR until the recent scandal. The mentalist

Comments are closed on this article.

click2find

About cookies

We want you to enjoy your visit to our website. That's why we use cookies to enhance your experience. By staying on our website you agree to our use of cookies. Find out more about the cookies we use.

I agree