IRSA Mis-selling, Libor Fixing & Natwest System Crash [2nd Jul 2012]
The Financial Services Authority has ruled that Barclays, HSBC, Lloyds and Royal Bank of Scotland will be required to offer compensation to their customers who were affected by their interest rate swap arrangements (IRSAs). An IRSA are derivative products which are sold as protection against a rise in interest rates. However the FSA has found that those sold these products did not fully understand the risks. Martin Wheatley, the managing director of the FSA has said that small businesses have been especially affected by the mis-selling of these products. It was found that the main drivers of the mis-selling were incentives and rewards which led many to not inform customers of the risks involved , gauge their understanding or offer alternatives. Some were told it was a requirement of their loan agreement. The British Banking Association has said it will work closely with the FSA to ensure that compensation is offered where required. Related Stories: Banks face hefty compensation over irsa misselling - www.independent.co.uk IRSA mis-selling banks facing thousands in compensation - www.dailymail.co.uk It is thought that there may be a wave of compensation claims after the Libor scandal involving Barclays bank and a number of others. The scandal involves the fixing of interest rates for loans between banks which in turn could have affected the interest rates of loans and mortgages. It is possible that some consumers could have paid more than was necessary on their loans due to the fixing, but experts believe that this will be almost impossible to prove because the rates are calculated daily. Those with tracker mortgages would be most likely to succeed in proving losses. Lawyers however are pointing out that it may be worth bringing a legal case against the bank in the small claims court because it is not necessary to prove how much the losses were. Savers could also be in for compensation because their rates were kept artificially low. Related Stories: Barclays Libor scandal could result in homeowner compensation - www.thisismoney.co.uk Customers of Natwest who were affected by the technical problems at the bank in the last week are now looking at how they can apply for compensation and repair their credit ratings. The banks has said it will be launching a full investigation into the problem which saw customers not able to access their accounts for several days, with many having problems paying their bills. Customers have been promised that they will not be left permanently out of pocket. Those who lost money or had problems are being advised to keep receipts of any out of pocket expenses, list all transactions, penalties and overdraft fees and complain to the Ombudsman if their issues are not dealt with. Related Stories: Natwest RBS face compensation claims - www.myfinances.co.uk A boy who received an electric shock at a leisure park has received a compensation payout of £1,750 plus the leisure centre has had to pay a fine. The Belhaus Park Leisure Centre agreed that they failed in two counts of health and safety after their faulty hairdryer electrocuted the boy. His mum Danielle Sutton said that her son had nightmares after the incident which left him screaming in pain. He was also left with a burn mark and singed clothing. Paramedics said that the fact he was wearing rubber shoes meant the shock failed to come out through his feet. The leisure centre said that the hairdryers had been misused and over time the cable had become damaged. It was decided that the dryers were not robust enough for where they were being used. Related Stories: Compensation for electric shock boy - www.thurrockgazette.co.uk  |
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