Onside Issue 4 - 34

ONSIDE / FEATURE

FIGHTING THE BANKS ON
THREE FRONTS
Banks are offering
compensation deals
to businesses who
suffered from being
mis-sold interest rate
hedging products, but
it might be premature
to grab at the first deal
on offer with more
misbehaviour still to
come to light

he continued tug of war between businesses and
banks over a fair deal on mis-sold hedging products
has entered another new phase with banks offering
deals to clients.
But in a recent case where Seneca Banking Consultants
(SBC) acted on behalf of a Northern business, the first
deal wasn't necessarily the best offer of compensation in
relation to a number of mis-sold Swaps. Seneca recovered
over £1.2m but only after the bank rejected the initial
complaint. A challenge from Seneca resulted in the bank
agreeing to overturn their initial determination and securing
a significant upturn for the client. Redress was increased
from £150,000 to over £1.2m.

We have advised over 1000 businesses on claims with a
combined interest rate hedging debt quantum in excess of
£1 billion."
But as well as the banks trying to sweep the problem away
hastily, the role of the regulator has come under some
scrutiny too.
The Financial Conduct Authority (FCA) has agreed to review
their Interest Rate Hedging Product (IRHP) compensation
scheme, aimed at providing redress to small and medium
sized enterprises affected by the mis-sale of toxic hedging
products. The scheme, which has paid out £1.9 billion to
over 12,000 businesses to date, has come under fire from
MPs and business organisations.

Dan Fallows, Director at Seneca Banking, said: "More
and more banks have been cutting corners and offering Criticisms include insufficient redress, businesses often being
insufficient redress. We are dedicated to getting back the completely excluded from the scheme as they were deemed
money businesses are owed if they have been mis-sold an 'sophisticated' and the fact banks have been allowed to replace
Interest Rate Swap or other Interest Rate Hedging Products. these toxic Swaps with other replacement hedging products.

Table of Contents for the Digital Edition of Onside Issue 4

Contents
Onside Issue 4 - Cover1
Onside Issue 4 - Cover2
Onside Issue 4 - Contents
Onside Issue 4 - 4
Onside Issue 4 - 5
Onside Issue 4 - 6
Onside Issue 4 - 7
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Onside Issue 4 - Cover3
Onside Issue 4 - Cover4
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