Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......
That's why Angie baby does not want reform-so that the scams can continue.
Originally posted by EXC
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Another day, another mis-selling protection racket exposed.
Banks Accused Of Interest Rate Insurance Scam
A Sky News investigation has uncovered evidence High Street banks deliberately mis-sold interest rate protection, leaving hundreds of firms struggling to meet repayments.
In an interview with Sky News, ex-Hbos and Lloyds TSB employee James Ducker claims banks flouted guidelines and put profits before customers' interests.
The products are known as 'swaps' because the bank and customer exchange or 'swap' loan repayments. If interest rates rise, the bank covers the increase in repayments for the customer.
If rates fall, the customer pays a fee back to the bank.
Investors who entered into 'swap' arrangements claim the risks of low interest rates and exit fees were not explained to them.
Mr Ducker told Sky: "We were selling protection against rates increasing with a lack of consideration if rates fell.
"The bank was protected more than the customer and it was normal practice to emphasise the rewards and de-emphasise the risks.
"The pressure to sell these products was immense. We weren't there to help customers or mitigate their exposure.
"My manager described it to me as giving the customer an umbrella, then when it starts raining taking the umbrella away. "If rates go up, the bank wins. If rates go down, the bank wins. Was it ever explained to the customer in that way? No."
The Financial Services Authority consider 'swaps' so complicated they should only be sold to investment professionals.
But it is claimed they were marketed to amateur investors, who did not understand the risks. Ex-Welsh rugby national Spencer John turned to property investment after an accident left him unable to play.
He claims Barclays offered him a development loan but only on condition a 'swap' was part of the deal. When interest rates fell and Mr John could not afford the higher payments, Barclays charged him a fee of £95,000 to exit the 'swap' - something he insists he was not warned about.
"Barclays put a 'swap' presentation in front of me but it could have been written in Latin for all I knew; I didn’t understand it.
"When I missed a couple of payments, Barclays said I'd broken the deal and charged me £95,000." Mr John had to sell one of his properties to pay the fee and is now taking legal action against the bank.
Barclays claimed it provided Mr John with enough information from him to make an educated choice before entering into the arrangement.
His solicitor, Max Hotham, said: "We're taking enquiries from around the country from small businesses and individuals who are encountering real financial difficulties.
"Not only did Barclays sell 50,000 of these products but the majority of High Street banks were also active in the 'swaps' market."
High Street banks who sold 'swaps' are now bracing themselves for a wave of similar cases brought by firms which have gone into administration after struggling to pay the fees resulting from historically low interest rates.
Sky News Uncovers Evidence High St Banks Deliberately Mis-Sold Interest Rate Protection - Or | Business | Sky News
Banks Accused Of Interest Rate Insurance Scam
A Sky News investigation has uncovered evidence High Street banks deliberately mis-sold interest rate protection, leaving hundreds of firms struggling to meet repayments.
In an interview with Sky News, ex-Hbos and Lloyds TSB employee James Ducker claims banks flouted guidelines and put profits before customers' interests.
The products are known as 'swaps' because the bank and customer exchange or 'swap' loan repayments. If interest rates rise, the bank covers the increase in repayments for the customer.
If rates fall, the customer pays a fee back to the bank.
Investors who entered into 'swap' arrangements claim the risks of low interest rates and exit fees were not explained to them.
Mr Ducker told Sky: "We were selling protection against rates increasing with a lack of consideration if rates fell.
"The bank was protected more than the customer and it was normal practice to emphasise the rewards and de-emphasise the risks.
"The pressure to sell these products was immense. We weren't there to help customers or mitigate their exposure.
"My manager described it to me as giving the customer an umbrella, then when it starts raining taking the umbrella away. "If rates go up, the bank wins. If rates go down, the bank wins. Was it ever explained to the customer in that way? No."
The Financial Services Authority consider 'swaps' so complicated they should only be sold to investment professionals.
But it is claimed they were marketed to amateur investors, who did not understand the risks. Ex-Welsh rugby national Spencer John turned to property investment after an accident left him unable to play.
He claims Barclays offered him a development loan but only on condition a 'swap' was part of the deal. When interest rates fell and Mr John could not afford the higher payments, Barclays charged him a fee of £95,000 to exit the 'swap' - something he insists he was not warned about.
"Barclays put a 'swap' presentation in front of me but it could have been written in Latin for all I knew; I didn’t understand it.
"When I missed a couple of payments, Barclays said I'd broken the deal and charged me £95,000." Mr John had to sell one of his properties to pay the fee and is now taking legal action against the bank.
Barclays claimed it provided Mr John with enough information from him to make an educated choice before entering into the arrangement.
His solicitor, Max Hotham, said: "We're taking enquiries from around the country from small businesses and individuals who are encountering real financial difficulties.
"Not only did Barclays sell 50,000 of these products but the majority of High Street banks were also active in the 'swaps' market."
High Street banks who sold 'swaps' are now bracing themselves for a wave of similar cases brought by firms which have gone into administration after struggling to pay the fees resulting from historically low interest rates.
Sky News Uncovers Evidence High St Banks Deliberately Mis-Sold Interest Rate Protection - Or | Business | Sky News
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