Primary Keywords: Lloyds Bank Interest rate hedging products (IRHPs) Financial derivatives Mis-selling Litigation Settlement Care home Business Financial loss Secondary Keywords: Complex financial products Regulatory oversight Consumer protection Financial harm LEXLAW Solicitors & Barristers Buckinghamshire UK Lawsuit Settlement Break cost IRHP review scheme FCA Financial Conduct Authority Long-Tail Keywords: Lloyds Bank mis-sold interest rate swaps Lloyds Bank financial derivatives lawsuit Care home sued Lloyds Bank for mis-selling IRHP mis-selling scandal Lloyds Bank settlement over complex financial products Financial harm due to mis-sold derivatives Regulatory oversight of financial institutions Consumer protection in the UK LEXLAW Solicitors & Barristers legal case Buckinghamshire care home wins lawsuit against Lloyds Bank

The Sunday Times: ‘Lloyds pays up on rate swap wrangle’

Lloyds Bank has been forced into a significant litigation settlement regarding the mis-selling of interest rate hedging products (IRHPs) to The Coin Group, a care home operator. The case highlights the potential for banks to mis-sell complex financial derivatives to businesses, leading to significant financial losses. The Coin Group, represented by LEXLAW Solicitors & Barristers, successfully argued that Lloyds Bank failed to disclose the risks and potential liabilities associated with the IRHPs, resulting in a settlement of £4.6 million.

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. 

Lloyds Banking Group has settled a claim with a care home operator over the mis-selling of an interest rate swap (Sunday Times)

Success: Lloyds pays up…

Lloyds Bank settles another claim with LEXLAW client (Coin Group) over mis-selling of interest rate swaps (The Sunday Times, 26 July 2015)

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.

Source: https://www.thetimes.com/article/lloyds-pays-up-on-rate-swap-wrangle-d0p5zhvjtr5

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.

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