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Have you been mis-sold an interest-rate swap agreement?

Enable Independent have seen many business owners who have been victims of being mis-sold financial products by banks, and we can understand that for some this can in the worse case scenario be financial ruin for some businesses.

BBC documentary highlighted the problem of interest-rate swap arrangement, which has caused many to pay over the odds when the government slashed interest rates to stimulate the UK’s economy.

Terry and Stewart Flett, were one of the couples that felt as though they had been almost bullied by their bank into taking out an interest-rate swap arrangement, when they took out a large mortgage to pay for a hotel business.

They had paid out over £350,00 on top of their mortgage payments, under this agreement. An interest-rate swap arrangement is a very complicated financial product and the Fletts felt as though they did not know that if interest rates dropped they would have to pay a fortune back in interest each month. They were paying about £6,500 on top of their mortgage for their hotel business in Bournemouth.
Terry Flett told the BBC: “If I’d have known that our business, our home, our marriage was at risk, I just wouldn’t sign it and nor would any other small business.”

Her husband added: “We didn’t really understand what were getting in to – we assumed it would be good for us because the bank told us.” Eventually, after years of stress, the bank apologised and refunded them the £347,871.

In February this year the FSA, Financial Service Authority said that 90% of the interest swap deals it looked at had been mis-sold. The FSA says 28,000 of these products were sold by four banks – Barclays, HSBC, Lloyds and RBS – and it has been working with 100 businesses as it spent the last two months looking into the affair.

Trust in banks continues to be at an all time low. If you have signed up for some financial products that you do not understand, then why not give Enable Independent a call we pride ourselves in giving straight-forward independent advice to our customers. 

Issued by: Enable Independent Financial Life Planners
 25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 – Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.

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