Kiki Loizou, of The Sunday Times, reports on our Financial Services Litigation team’s recent successful settlement of a swaps mis-selling litigation case. A multi-cancellable swap was sold to a Care Home operator by Lloyds Bank. The bank refused to compensate their customer via the FCA-backed IRHP Review Scheme. Litigation forced the bank to pay out £4.6m for it’s wrongdoing to this customer.
A BUSINESSMAN has settled a two-year legal dispute with Lloyds Banking Group over the mis-selling of an interest-rate “swap”.
Errol Bland of Buckinghamshire-based care home operator Coin Group has won a £4.6m claim, which covers a multimillion-pound break fee on a 30-year interest rate hedging deal the bank advised him to take on a £1.7m four-year loan. The case was settled out of court two weeks ago.
“Not only have we had to put our business growth plans on hold for the past 5½ years, but we have had to incur legal and professional costs to defend ourselves against something that was mis-sold to us,” said Bland, 50.
He will be reimbursed the £900,000 he made in interest payments and £200,000 for his legal costs.
About £3.5m will cover the sum needed to cancel the contract. Lloyds denied any wrongdoing. “We are pleased that this now concludes the matter for the bank and the customer,” it said.
LEXLAW have conducted and settled substantially more derivatives litigation than any other law firm in England & Wales and are the leading law firm acting against banks in derivatives mis-selling claims.