FAQS Interest Rate Swap Claim – Frequently Asked Questions Q I would like to make a claim, what do I do next? Contact us immediately on 0771-7326-912 and we will call you back to conduct an interview in person or on the phone or email rateswapcompensationclaims@virginmedia Q What is the process thereafter? If we feel confident that you have a good claim we will ask for all contracts, documentation, and information surrounding the claim to be sent to us. We will then provide a more detailed assessment for which we charge an assessment fee. If we remain convinced that you have a claim worth pursuing, and that it can be underwritten by our insurers, we will recommend a legally valid insurance-acceptable assessment which you will need to invest in. Q. Why does Rate Swap Compensation Claims charge in assessment fees? Your case needs to be properly reviewed so the litigation can be insured. We first assess the case and if we feel you have a case we then take it to the next stage that requires legal sign off to underwrite the costs. The good news is you won’t have to pay for any of that. Interest Rate Swap cases tend to be quite complex and the products themselves are complex. When considering a claim against a major corporate body such as a bank, you should consider how that complaint is made. If the complaint is not properly made, and the most appropriate amount of damages claimed, it is unlikely you will get a second chance. A rate swap claim is very different from PPI, for example the regulatory framework governing banks and the sales of hedges is complex. It is therefore important for you, as a client, to consider whether a law firm has the in depth knowledge and experience to handle your claim and the various types of compensation you should be due. Rate Swap claims should not be run on a volume basis. These claims, in the majority of cases require a bespoke service. Rate Swap Compensation has a reputation for how it conducts itself, and volume based litigation is not how we feel we would best serve our commercial client’s needs. Q How much does a full assessment cost and will I get this fee back? An assessment again varies in price, depending on the level of work and expertise required but is typically in the range of £2,000 to £5,000 plus VAT. This money will form part of your compensation claim i.e. money you get back when the claim is won in full. A case will not be underwritten unless our counsel and expert think you have a good chance of winning. Similarly we will not recommend an in depth assessment and report unless we thought the same. Q. What does Rate Swap Compensation think of The Financial Ombudsman as a route to making a claim? Each case is unique and will be assessed by an experienced solicitor and experts. The Financial Ombudsman will typically take much longer and with a generally much lower success rate. The Financial Ombudsman has made a number of ‘banker friendly’ rulings. In our opinion they are not necessarily equipped to aggressively fight your corner. Barclays recently issued a press release confirming that 90% of all hedging product complaints made to the Financial Ombudsman Service against Barclays were found in Barclays favor, which does not paint an optimistic picture. Q What Does Rate Swap Compensation Claims think of the FSA led review? The FSA-led review is being carried out by the banks themselves ‘over-reviewed’ by a so called independent company. Most so called independents are large accountancy firms, whose major clients happen to be the banks. Stellar Law feels there is too much vested interest in an FSA led review and does not generally recommend. However, all cases are different and must first be analysed by an experienced solicitor before a decision can be taken as to how a case can be resolved. Q. We have heard that a ‘large group class action suit’ is being considered by some companies. What are Stellar Law views on this? We don’t recommend it. Under English Law group claims are issued through the Courts under a Group Litigation Order (“GLO”). For interest rate swaps claims this is not advised. There are so many products and as a result each case is unique and should be assessed on its own merits. Furthermore your case may be much stronger than another fellow claimant, and you could be pressured to settle on the merits of another case. Q. Would Group Litigation Order claim be less expensive? Probably. A GLO takes a large number of similar cases and tries, typically up to half a dozen to represent the whole group. Litigation is much cheaper because the lawyers and the Courts will settle the remaining cases based upon the outcome of those 3 to 6 cases that are tried before the Court. If the 3 to 6 lose then the rest may be unsuccessful. If they succeed the rest may also. However it can go the other way so is not ideal, particularly if your case is strong. Q What do I need to consider to identify if I was miss-sold an Interest Rate Swap? 1. Misrepresentation. Was there a heavy emphasis on the ‘positives’ of signing the agreement with a failure to explain the key disadvantages, notably the fact that the periodical payments would increase dramatically if there was a fall in interest rates, and that exit or penalty fees would be charged? Were you clearly guided through potential pitfalls when signing? 2. Borrowing Mismatch Was there a mismatch between the underlying borrowing (i.e. the term or amount of the loan), when compared to the hedging agreement? 3. Unreasonable Pressure Was unreasonable pressure used by the Bank’s to force you to take out the products in order to qualify for borrowing and/or renewing existing facilities? 4. Independent Legal Advice Were you clearly advised to take out separate and independent financial or legal advice when the Rate Swap deal was presented? 5. Breach of The FSA Rules The Financial Services Authority has set out clear guidelines on codes of conduct in reference to the selling of financial services. Did your lender breach The Conduct of Business Source book that governs the behaviour of banks and their employees when you were sold a Rate Swap deal? 6. Negligence Was there a failure to ensure that the needs of the customer were fully addressed by the arrangements put in place? Were you as a client given the opportunity to make an informed choice? Was the product imposed upon you? Were you trapped by a previous agreement and threatened with the withdrawal of your facilities if you refused to sign a Rate Swap deal? Was there emotional pressure to sign and did you feel refusing to sign might contaminate your relationship with your lender? Q Why should I use Rate Swap Compensation Claims? We are highly aggressive in our approach and are currently running in excess of £120 million of interest rate swap claims. We have extensive experience in winning financial miss-selling claims. We investigate the miss-selling factor as well as any consequential losses you may have suffered. We have a substantial litigation fighting fund, enabling us to persist and deliver the result you need. We charge a fixed fee to assess your claim and offer a genuine ‘no win, no fee’ service. All losses agreed or ordered by the courts are returned to you and your business. We do not work for any Bank or financial institution. We will provide you will a genuine tailored solution that will best meet your needs We are experts in our field and will guide you every step of the way. For advice please call us on 0771-7326-912.
Posted on: Mon, 26 Aug 2013 23:03:35 +0000
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