DTM have been representing businesses in relation to consequential loss claims following the loss of their businesses as a result of the mis-selling scandal.
On 24th April 2015 a landmark hearing could open the floodgates for further legal challenges from businesses that were sold complex financial products.
Back in 2012, the FCA agreed terms with a number of High Street Banks to compensate thousands of customers who had been mis-sold complex Interest Rate Hedging Products (IRHPs).
The scandal, which has so far led to the banks paying out £1.8 billion in redress, is set to come to an end on March 31st, as the FCA have introduced a deadline for all claims to be submitted by this date.
A Judicial Review could result in the banks re-examining cases and in turn paying out more in compensation for stricken SMEs. It is believed the mis-selling bill could run in to the tens of billions if the Review was to go ahead.
Consideration will be given to whether or not the regulator allowed the perpetrators of mis-selling to unduly influence the compensation process to reduce payments to innocent parties that lost their businesses because of the impact the products had on their finances.
Anna Duffy said “The banks are self-adjudicating on these claims and they have ex-swap salespeople reviewing whether such products were mis-sold. There is a lack of transparency and independence of the process due to the banks’ refusal to publish the guidance which the mis-selling and redress amount is being measured against. It is basically a chance for the courts to decide if the FCA has being doing its job in policing the scheme properly.”