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FAQs about Interest Rate Swaps

If you attempt to exit from a swap agreement without professional help then you could end up paying punitive break costs. These can be as much as 40% of the initial loan value.

Veritas Treasury is one of the leading players helping victims of the scandal. Led by a former head of treasury sales at a major high street bank, we have the experience and knowledge to guide claimants through the confusing and complex processes.

While lawyers have become involved in class actions against the banks, Veritas Treasury believes that a non-litigious approach, handled by banking experts with interest-swap experience, works best. Indeed, two high-profile lawsuits have already failed

The advantages of working with Veritas Treasury is that we can quickly identity whether you are eligible to claim, and how your claim should be structured. We will also negotiate with the bank on your behalf.

We aim to make the process easy and straightforward for both you and the bank. Our in-depth knowledge of the regulatory and compliance framework allows us to give you the best advice, and secure a negotiated settlement that is acceptable to both parties without the need for litigation.

As part of the Review authorised by the FCA, the banks are sending out letters to all potentially affected customers, asking them if they wish the sale of their product to be reviewed. If you receive a letter you should opt in immediately and then contact us for advice.

Getting a claim initiated quickly will bring you immediate respite from the spiralling costs of an inappropriate swap deal. Although it is not widely known, the banks have agreed with the regulator, the FCA, that they will suspend swap repayments on disputed loans until the loan review is carried out on disputed loans where the client is in financial difficulty.

The sooner you initiate your claim process, the sooner you could be freed from the burden of harsh interest payments.

Many bank customers affected by mis-selling will be understandably concerned about claiming because they may have other outstanding bank loans or debt. Veritas Treasury can advise you on restructuring your borrowing. We are sensitive to the context of your broader relationship with your bank and will handle negotiations accordingly, and where possible we will try to continue the banking relationship and secure a negotiated settlement that is acceptable to both parties without the need for litigation.

Every individual case is different, hence the need for tailored expert advice. However a recent example shows what can be achieved. In May 2013, in one of the first cases to be settled, a hotel-owner from Surrey received nearly £350,000 in redress from their bank. They had been mis-sold an interest rate swap to offset interest rises on the mortgage on the hotel they owned.

At Veritas Treasury we believe that a non-litigious approach, handled by banking experts with interest swaps experience, works best. Indeed two high profile lawsuits in Scotland and England have already failed.

Litigation is fraught with problems and involves considerable expense, stress and delay. Lawyers do not have the same in-depth knowledge and experience of interest rate swaps as the expert treasury team at Veritas Treasury. We make it easy for both the customer and the bank to reach settlement through our in-depth knowledge of the regulatory and compliance framework.

We operate on a strictly no win no fee basis.

The review being conducted by the banks will cover what are termed non-sophisticated customers. These are defined as customers who meet at least two of the following criteria: turnover of no more than £6.5 million; balance sheet total of up to £3.26 million; and no more than 50 employees.

However customers who do not meet the non-sophisticated criteria may still have a valid claim for redress. In June 2013, a cross party group of MPs criticised the FCA definition of ‘sophisticated’ based on size and called for the review, and compensation scheme, to be extended.

The scope of the Review covers the following Interest Rate Hedging products (IHRPs);

Swaps: these allow customers to fix their interest rate.

Caps: these place a limit on any interest rate rises.

Collars: these protect customers from interest rate fluctuations within a simple range.

Structured collars: these enable customers to restrict interest rate fluctuations to within a specified range but expose them to interest rate rises.