McHale & Co. Solicitors Blog

ITV News Story-are the banks delaying payouts deliberately?

ITV news ran with a story last night about the owner of a property company who feels like the bank were using “underhand tactics” and deliberate delays. It is hard to argue with that suspicion given that the scheme took much longer than expected to set-up and we are now twelve months into the scheme proper and there have only been a relatively small number of payouts. It was anticipated that matters would have been finalized for the majority of victims

Anthony Browne, chief executive of the British Bankers’ Association, told ITV: "The banks are working to a deadline set by the regulator...but there is a lot of work to be done." The deadline was a moveable feast in the first place given that the regulator never made clear when the clock started running and I think it is highly unlikely that the banks will have completed the work anytime soon. Remember that it was hoped that 6 months would be sufficient time and it was only in the case of banks with bigger review populations (widely interpreted to simply mean RBS) that 12 moths was the time limit. We have well and truly sailed past the 6 months now and many are still to have their cases assessed.

The fear that we have always had is that the banks would play for time and allow the 6 year limitation time limit for starting court proceedings to expire for most people. We have constantly advised people to enter into “standstill agreements” with the banks so as not to run out of time. It will be interesting to see over the next few months how many headed that advice and how many have allowed themselves to place trust in the banks again when being  told by them that they don’t need to see a lawyer and that they would be sorting matters out. The FCA’s complicity in giving this “advice” could well prove to be a final sting in the tail of this whole sorry story.

Categories: Interest Rate Swaps

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