Small firms sue for rate swap damages

How The Times broke the news last week
How The Times broke the news last week

Thousands of small companies hit with huge losses because of the mis-selling of complex financial products have been “failed” by official compensation, according to a victims group, with affected businesses instead preparing to turn to the courts for redress.

The Financial Conduct Authority’s scheme to compensate businesses that were mis-sold swaps by Britain’s banks has been too slow, provided scant refunds and has been too heavily influenced by lenders, according to Bully Banks, representing the victims.

With the FCA’s scheme nearing a conclusion, Bully Banks said it would reignite its campaign to provide justice for victims and address perceived failures in the process, which include allowing banks to replace one rate swap with another in lieu of compensation.

Research by the group, which has more