Interest Rate Swap Success: “Tear up the product”

Josiah Hincks’ Litigation Partner, Steven Mather, has had yet another success story in the fight for Justice against the Big Banks – by getting the bank to admit it mis-sold a complex financial product and confirming they will tear up the contract.

Rate Swap products, also known as Interest Rate Hedging Products, are complicated financial products sold by the Banks as “interest rate protection” for the customer, when in fact they were always intended to protect the Bank and ended up costing customers thousands of pounds extra.

The Bank’s Director confirmed in writing that he was “able to confirm that … the decision is that [the Bank] should cancel the IRHP, backdated to the date of the original sale.

All the payments made under the Interest Rate Hedging Product are being claimed back, along with interest, costs and other consequential losses. In this particular case, the compensation is likely to hit half a million pounds.

Steven is one of only a handful of lawyers outside of London acting for claimants in rate swap claims with both significant experience and knowledge of financial services claims and actual settlements under his belt. Steven said “It has been a tough fight for my client but we are there and I’m delighted. I am keen to fight for (and get) justice for my clients. These complex financial products should never have been sold to small and medium sized businesses in the first place and results like this are just the first step in reversing 5 years of hell for my client”.

Even if you/your clients are undergoing an FSA review, they will benefit from instructing us. While they are told they don’t need solicitors our experience is that the process is far from simple and the success rate is higher for those who have solicitors.

For more information about rate swap claims/interest rate hedging products, please contact Steven Mather on 01530 835041 and read our page on Banking & Financial Services Litigation.