Farmers hit hard in swap mis-selling scandal
30th June 2014
Indications are that farmers and land owners are amongst those that have been mis-sold financial products. Many could be due compensation.
A review undertaken by the Financial Services Authority (FSA) has identified a number of bad practices undertaken by many banks, including inappropriately selling financial products to thousands of individuals and small businesses, including farmers and land owners seeking loans. Customers were frequently persuaded to buy "swaps" to protect themselves against feared interest rate rises. Swaps allow a customer to fix their interest rate.
As a result of the FSA review, banks have been compelled to review the swaps sold. In many cases where mis-selling has taken place, the individuals and companies that were sold these products are entitled to compensation.
Banks have set aside in excess of £3 billion to compensate customers who have been mis-sold and this figure is likely to rise significantly.
Rob Evans, a solicitor specialising in professional negligence with particular experience of handling mis-selling compensation claims commented:
"Farmers appear to have been a particular target for the mis-selling of these complex derivate products. Some farmers have only become aware of the fact that they were even sold a product when cheques and direct debits start being returned as a result of the huge interest payments due under these swaps."
"We are helping a number of customers mis-sold swaps and other inappropriate financial products. Some have overpaid interest by many hundreds of thousands of pounds whilst others have been quoted figures of more than £9million to break their swap agreements."
"Many people are contacting us to help them firstly assess their claim and secondly help them secure the full compensation that they are due. In many cases, the banks are offering compensation that is nowhere near the amount that the person is entitled to following a full review. We are helping customers get the full compensation that they are due."
We have a specialist team who are experienced in successfully securing compensation for customers affected by mis-selling. We provide clear and concise practical advice whether you have already incurred a loss or are still suffering as a result of the hugely increased interest payments.