Consequential losses on mis-sold interest rate swaps

We have written on numerous occasions about the importance of involving a specialist forensic accountant to quantify consequential losses in relation to Interest Rate Swap claims. Never has this been more important and if you know of anyone who has recently received a redress offer by the bank we urge you to contact us.

In recent months there has been an increase in redress offers from the banks. Following the offer of initial redress the bank allows the claimant the opportunity to make a claim for consequential losses.

We have seen a number of instances where the victim of the mis-sell does not realise that they are entitled to make a claim for consequential losses, or indeed that they have incurred consequential losses.

Due to the sheer size of the additional interest paid on most swaps, we believe that it is likely that most, if not all victims of Interest Rate Swap mis-selling will have suffered some sort of consequential loss.

Consequential losses can range from additional bank charges incurred as a result of utilising the overdraft to loss of profits arising due to the failure of the business.

There are many examples of companies that have been liquidated as a direct result of being mis-sold a swap.

We are currently acting for a large property company that was placed into receivership by the bank. Prior to the decision to place the company into receivership, the bank instructed a major accountancy firm to provide a business review. The review concluded that if the company continued to trade it would have an annual cash deficit of £250,000. However, it also identified that the swap payments the company made totaled £750,000 per annum. Furthermore, in order to break the swap it would have cost the company £1.6 million. In this instance it is clear that but for the swap, the company would not have been in any financial difficulty and would have had a cash surplus of around £500,000 per annum. The outcome was that the company was subsequently liquidated and the shareholder was made bankrupt. Clearly the consequential losses in this matter will be significant.

At Inquesta we are one of the leading firms in the UK for dealing in consequential loss claims arising as a result of a mis-sold interest rate swaps. Due largely to our involvement in our sister company, Prolific Claims, not only are we expert forensic accountants, but we also have detailed knowledge and experience of dealing with Interest Rate Swap claims.

In conjunction with the claimant and/or its advisors, we will construct a robust consequential loss claim supported by cogent evidence and provide a detailed report to send to the bank.

We provide an initial no obligation, no cost meeting to discuss your claim. If you would like to discuss your consequential loss claim, please contact Rob Miller on 0845 223 4700 or [email protected]

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