BBC Panorama exposes costly bank ‘swap’ scandal

LEXLAW have recently advised and given expert comment to BBC Panorama in order expose, on behalf of our SME clients, the banks who mis-sold. The programme will expose that customers were mis-sold complex loan insurance products and could be fined by the regulator, the FCA.

BBC Panorama: Britain’s New Banking Scandal

The ‘swap’ deals were meant to give borrowers security against rising interest rates but with interest rates at an historic low many businesses have seen their payments soar.

A redress scheme set up by the Financial Conduct Authority (FCA) to review nearly 30,000 cases involving various major banks has to date led to payouts for just 32 businesses.

The FCA said the mis-selling of these products was a cultural problem and it would consider fining banks after the redress scheme had closed.

Catherine and Michael Whelan from Newport are just two customers who have been affected by the scandal.

After Panorama contacted Barclays about their case, the bank said it had suspended Kites Nursery’s interest rate swap payments and if they made mistakes, they will put them right. Adam Shaw reports.

Panorama: Britain’s New Banking Scandal, BBC One, Monday 14 October at 20:30 GMT and then available in the UK on the BBC iPlayer.