Is this the new PPI scandal? Banks 'mis-sell' derivatives to businesses

The interest on this matter is well overdue the FSA and Fos have so far been shirking their responsibilities in this matter. It is time to take the lead and not wait for court decisions which do not surface due to the disgraceful tactics of banks settling on court steps subject to a gagging order on swap rate victim. Shame on you all banks yet again demonstrating back street bully boy behaviour. We are issuing our claim

They don't have a claim, if the rates had gone up then they would have happily claimed on the policy and saved thousands, as it happens it went down and cost them. That's life. If they win this claim I'm going to sue the national lottery, I will claim that over the last 10 years I have lost thousands yet there adverts only show people winning, thus they miss-sold the product.

The practice of pushing derivatives is well established practice in commercial/business banking due to the size of the fees charged (as opposed to a simple and more appropriate fixed rate). In my experience unless the client was an investment fund manager or a accountant qualified FD at a sizeable corporate this was unethical. Most relationship managers have difficulty in understanding these products so I'm not surprised this is happening now.

What ever happened to being responsible for you own actions?? Stop crying "Nanny, help me"......!!

Why didn't the FSA question this (and PPI) when it was launched?? Maybe the FSA should pay compensation?

Whatever an 'asymmetric leveraged collar' is supposed to mean, twits on this thread who argue who argue small businesses should have turned down what they didn't understand, are overlooking the rather bigger point that it was far more likely to have been, "no contract, no loan". This is the commercial loan equivalent of the personal loan scandal.

By around 2006 it was already getting hard to get anything simple from a bank without a load of other expensive unwanted strings being thrust upon you.

Imran

Of course they have a legal claim. These contracts were in many cases unlawful.

The FOS has proved useless, and in any event its jurisdiction limits are too low.

Any business affected should see a solicitor. There are numerous firms in this market, (including mine) so a beauty parade is a real possibility. They should pick the firm they think suits them best.

Robert Morfee

There are numerous ways that these products could constitute 'mis-sold'. The banks were set a series of steps by the FSA that they had to go through in order to ensure that the products were fit for purpose. In many cases that I have seen there is considerable variance as to this level of care. Sometimes the banks did a decent job, but often they failed in several aspects. In the worst cases, they completely transgressed the rules.