FSA & Interest Rate Swaps

6th Jul 2012

It was great to hear that the news that the FSA has got the “big 4 banks” to come clean about their appaling misselling to businesses. That they go on to discourage people from using solicitors to persue the claims for people is disappointing.

A note of thanks to those solicitors who have taken on the banks thus far, on a “no win, no fee” basis, and brought matters to the present pass would have been nice!

Of course it was the FSA that were asleep at the wheel in the first place (again!) so perhaps I shouldn’t be surprised! Have they stopped to think that: The FSA agreement is limited to only to those 4 banks when we all know that others were at it.

The scheme invites the banks to carry out a review internally. These are the same people who were denying that they did anything wrong a few days ago!

The process will naturally be “interactive” and require customers to answer questions but many customers could compromise their position by giving answers without the right advice.

The scheme is limited to “unsophisticated” clients and the banks will try and keep many people out of this group who should be in it.

The amount of compensation will be a huge area of debate (Quantum). The banks will try and under compensate and the arguments will be the legal ones of “Remoteness of damage” and “reasonable forseeability”.

Many people would simply rather someone else did most of the work. It allows them to concentrate on their own business. (You can decorate your own house but many people still gate professional decorator in!).

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