Historically, when banking customers were looking to take out a bank loan or refinance their current debt with their bank they were advised to take out an interest rate hedging product ("IRHP") to protect themselves from increases in interest rates.
The customers were invariably never advised of the risks of interest rates falling. As a result when interest rates fell at the start of the economic crisis thousands of customers were left with fixed interest rates well above the bank of England base rate. In recent years, it has come to light that many IRHPs were miss-sold and the FCA has set up a review to compensate customers for such miss-selling. Customers were invited to complain to their bank by no later than 31 March 2015.
Customers who did not join the IRHP review before 31 March 2015 still have the following options (subject to time limits for making a compliant):
- To complain about the sale of the IRHPs through the bank’s usual complaints handling process;
- To refer their complaint to the Financial Ombudsmen Service; or
- To pursue their claim through the Court.
How we can help?
If you have been miss-sold an interest rate hedging product or interest rate swap, Smooth Commercial Law can help you obtain compensation. Due to time restraints we advise our client’s to contact us immediately if they believe that they have been miss-sold an IRHP so that we can advise on the best way forward.