A COUPLE facing financial ruin after they were mis-sold a complex insurance product are still desperately waiting for the £350,000 refund that could save their business.

Terri and Stewart Flett, who own the Hotel Piccadilly in Bournemouth, were delighted when their bank apologised for mis-selling them an interest rate swap agreement and agreed to repay £350,000.

But their joy soon turned to despair, when Barclays could not tell them when they would receive their money.

Barclays said it is calculating the couple’s “consequential losses” and adding this to their refund – a move that could take a year.

That prospect has horrified the Fletts, who are living on just £100 a week and only keeping afloat because Stewart, 68, has returned to work dealing in car parts.

Terri, 56, said: “It took us 10 minutes to get into this deal and years trying to get out of it.

“We constantly think about giving up but if the business collapses then we will never get any money back.”

The couple bought the specialist dance hotel in 2007, realising a long-held dream for dance teacher Terri.

They signed up to an interest rate swap agreement after their bank said it would protect them if rates rose.

But when rates fell, the couple had to pay up to £8,000 every month. When they tried to get out of the policy, the exit fee increased from £38,000 to £347,000.

The bank revalued their hotel at £1million less than they had paid for it and their interest rate increased, as they were deemed higher risk.

The couple were forced to axe staff and couldn’t afford essential repairs.

“Last year we were losing £600 a day,” Stewart said.

“We were on a downward spiral from the minute we signed the swap. It is mentally exhausting.”

Terri said: “It feels like a game that we’ve got no chance of keeping on top of. This has spoiled the dream for us.

“We know there are so many out there in the same boat and they’re looking to us for hope.

“The smallest amount we know of is £150,000 and the biggest is £32million.

“Can you imagine the benefits if that money was repaid and injected into the economy?”

In a statement, Barclays said: “It is in Barclays’ interests as well as our customers to get this sorted as soon as possible, so we are getting on with it as fast as we can.”

Poor practices of banks

It’s estimated more than 40,000 interest rate swaps were sold to small businesses and the cost of compensating customers could easily top the £10billion PPI bill.

A national campaign group Bully Banks is leading the fight on this issue and held a regional conference in Bournemouth last year.

Dorset law firm Ellis Jones Solicitors is handling more than 40 cases of mis-selling, their clients range from care home owners, caravan park operators, hoteliers and pub owners.

An investigation by the FSA found evidence of poor practices by four of the UK’s biggest banks. In many cases, clients were not told of the risks, while in others the agreement was a condition of their lending.