Seneca Banking attacks unfair ‘swap for swap’ offers
ONE of the leading players in the interest rates swaps mis-selling scandal has criticised the financial regulator for allowing banks to make what it claims are insufficient compensation offers to affected businesses.
Bolton-based Seneca Banking Consultants, which has so far recovered £15m for clients and is advising on more than 300 more claims, is critical of lenders being allowed to make ‘alternative product’ offers to small firms, rather than paying them the compensation they are owed.
Daniel Fallows, director of SBC told TheBusinessDesk: “These swap for a swap products are not fair to the small businesses affected because it does not put the business ‘back in the position it would have been’ as per the Financial Conduct Authority guidance to banks.”
He says the current system is unacceptable because the banks are a being allowed to assume what businesses would or would not have done had the bank given them correct advice in the first place.
“The FCA appear to be allowing banks to continue to do this and deny businesses the compensation they are owed.”
He warns that businesses should not be afraid and challenge offers made by the banks. On behalf of one client which was offered an alternative product rather than cash, Seneca appealed and achieved a £150,000 settlement and a more favourable alternative product.
Mr Fallows added: “The banks and the FCA continue to advise that is is a simple process and customers do not require representation, but we are seeing more and more instances where due to a lack of representation customers have been provided with unfair determinations that do not reflect the damage caused by a mis-sold product.”