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Dec, 2014

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  1. #1
    Join Date
    Nov 2012
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    537

    Default Interest rate swap agreements mis selling

    Hi. I am wondering if anyone has been sold any interest rate swap agreements? I have seen nothing on this site regarding it and apparently it is effecting many landlords throughout the UK, myself included. Does this apply to anyone here?

  2. #2
    Join Date
    Mar 2009
    Posts
    9,778

    Default

    Why did you buy one (or several)?

    Was it all someone else's fault?
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

  3. #3
    Join Date
    Nov 2012
    Posts
    537

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    Yes me and 40,000 other people have bought them. We were rail roaded into from large banks. Many large landlords have been, suprised there was no comment on here about it. Check out www.bully-banks.co.uk they have all the background info on it.

    I think it will be the next PPI mis selling scandal as these agreements are in the millions. The FSA has already stated it was mis-selling.

  4. #4
    Join Date
    Mar 2009
    Posts
    9,778

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    Shocked!

    How exactly were YOU railroaded precisely please?

    How much compo are you after?
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

  5. #5
    Join Date
    Nov 2012
    Posts
    537

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    Railroaded - My relationship manager had agreed to lend me £200k to finish a project refurbing 20 flats to let. I was told to just keep writing cheques and overdraw account until loan comes through.

    £70k overdrawn I am told to stop writing cheques even though I have 20 men on site and that the bank now require an IRSA before granting any loans going back on the origianal agreement! This leaves me no option.

    I have currently paid them £150,000 in 3 years going up! I was to meet the banks interest rate specialist billed as the premier interest rate specialist in the Uk who was in fact only a salesman. He informs me that I need to fix quickly or miss a golden opportunity of historically low rates.

    On top of this the bank are actually manipulating the libor rates to earn even more profit!

  6. #6
    Join Date
    Oct 2009
    Posts
    5,392

    Default

    Hech, this wasn't the bank you might go to if you were a royal in Scotland would it? (We aren't allowed to name and shame anyone here.)

    Google: 'BREAKING: Allegations of systemic fraud in' for an article about this. Also there is this article I linked to last month:

    http://hat4uk.wordpress.com/2012/10/...-smes-scandal/

  7. #7
    Join Date
    Jan 2010
    Location
    West Midlands
    Posts
    425

    Default

    This is quite an emotive issue that I'm sure a lot of 'ambulance chasers' will try and jump on the bandwagon to exploit, but fundamentally when a borrower looks at a specific fixed rate product provided by one of the main lenders the lender itself has secured a tranche of funds that it markets to its borrowers and these can easily be identified as such as they all have a fixed expiry date on them irrespective whether you were first in the queue for the funds or the last one to use them up.

    What is in question here is the pressure an awful lot of borrowers were under to take bespoke SWAP solutions to get their borrowing agreed, and to be fair most borrowers are not sophisticated enough to understand specialist derivative products and most assumed the bank was looking after their interests.

    In a rising market (cost of funds) these products work well and they are indeed a 'hedge' to protect the lender and the borrower, it is a falling market that we have experienced over the last nearly 4 yrs that have showed the weaknesses here as the cost of the SWAP (Hedge) is often fixed but the return has fallen and many borrowers are either stuck in a product it costs too much to break or are paying way too much against what funds are actually costing.

    I agree that this is potentially the next big banking scandal but as it affects fewer 'consumers' it doesn't seem to get the press it deserves, but as more legal firms (this is way too big and complicated for the fancy 'claims' firms) get their cases through the courts the news will out.

    The following link I feel really explains the issue well. I am not in any way connected to the firm or endorse their services but it is easy to understand.

    http://www.youtube.com/watch?v=ydsv2vq3iUM&noredirect=1
    CFA

  8. #8
    Join Date
    Oct 2009
    Posts
    5,392

    Default

    Sorry for being flippant here, but that video so reminded me of this:


  9. #9
    Join Date
    Nov 2012
    Posts
    537

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    No No nothing to do with Scotland, a large Uk lender but your article is very relevant. Luckily I am in a strong position but many other businesses have went to the wall due to these swaps which were deliberately forced onto people.

    Make no mistake these were forced onto many customers, everyone knows these products were mis-sold but the stark reality is there are 40,000 of them some with values of £50million and the government is aware that this means fundamentally the banks are broke yet again.

    As the government owns very large portions of some banks it will again be the tax payer forking out for bankers ripping people off and paying themselves multi-million pound bonuses! The banks realised they were bust before anyone else and this is how they tried to claw in large sums from some of there best customers.

    No wonder there are talks of opening up the QE programme again and the pound is falling. Banking crisis far from over, another 2 year delay to help put this right in my opinion.

  10. #10
    Join Date
    Nov 2012
    Posts
    537

    Default Interest rate swap agreements mis selling

    Has anyone had an interest rate swap agreement mis-sold? I know I mentioned this before but just wondered if anyone else is effected?

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