NW SMEs hard hit by swaps mis-selling claims Berg

SMALL and medium-sized businesses in the North West are among the most seriously hit by mis-selling of interest rate swaps, a law firm claims.

Manchester-based practice Berg estimates that as many as a third of 40,000 firms claiming to have been mis-sold an swap product by a bank, are based in this region.

The firm, which has enlisted the support of Manchester Central MP Lucy Powell to highlight the issue, is warning that time is of the essence for businesses to make a claim because the regulator, the Financial Conduct Authority has set a deadline of May 31 for them to do so.

Berg’s managing partner Alison Loveday said: “Pursuing a mis-selling claim is a complex process, nothing like seeking PPI compensation. The outcome of an FCA review claim can hang on the tiniest of details, yet many businesses are still unaware of the fact they only have one chance to get it right.

“This is very a bank-led process and there is no formal right of appeal. Business owners should be aware that simply lodging a complaint with the bank will not stop the clock running.”

Lucy Powell, MP added “The mis-selling of interest rate swaps has seriously impacted hundreds of businesses in the North West and my constituency here in Manchester. Some have had to reduce their growth and some have even closed down.

“The banks still appear to be holding the power in this situation, and this must change. Whilst it’s encouraging to see that lots of the region’s businesses are taking action to recover the losses they have incurred, I’d urge them to seek the necessary advice they need to put themselves in the best position for pursuing a claim.”