Papers were filed with the High Court in London last week by patisserie owners, Mehmet Bay and Serpil Bay, who claim staff from Barclays Capital mis-sold them an interest rate swap that has subsequently cost them more than £300,000 in extra costs they say they were never warned about. They run a shop in Wood Green, London.
The Bays allege that Barclays sold them a 20-year "interest rate enhanced collar" in September 2008 that immediately began to cost them thousands of pounds every quarter as interest rates were cut to historic lows in the wake of the financial crisis.
The case is the latest to be revealed after a month-long investigation by The Sunday Telegraph and The Daily Telegraph of claims that major British banks, including Barclays, Lloyds Banking Group, HSBC and Royal Bank of Scotland mis-sold interest rate swaps to small business customers.
At least 20,000 small and medium-sized businesses are thought to have been sold interest rate hedging products by the banks.
With the fall in interest rates since 2008 many businesses have been forced to pay hundreds of thousands and, in some cases, millions of pounds due to the hedges, a cost they say they were never warned about. The banks deny any wrongdoing and say they always followed correct procedures when negotiating the swaps.
In legal documents seen by The Sunday Telegraph, Barclays is alleged to have proceeded with the sale of the complex product despite being aware from the outset of Mr Bay's "severe linguistic limitations".
Source: Barclays rocked by new claim of swaps mis-selling - Telegraph
Why give simple overdraft to business when complex tulip like that can be sold to people to feck 'em over?
The Bays allege that Barclays sold them a 20-year "interest rate enhanced collar" in September 2008 that immediately began to cost them thousands of pounds every quarter as interest rates were cut to historic lows in the wake of the financial crisis.
The case is the latest to be revealed after a month-long investigation by The Sunday Telegraph and The Daily Telegraph of claims that major British banks, including Barclays, Lloyds Banking Group, HSBC and Royal Bank of Scotland mis-sold interest rate swaps to small business customers.
At least 20,000 small and medium-sized businesses are thought to have been sold interest rate hedging products by the banks.
With the fall in interest rates since 2008 many businesses have been forced to pay hundreds of thousands and, in some cases, millions of pounds due to the hedges, a cost they say they were never warned about. The banks deny any wrongdoing and say they always followed correct procedures when negotiating the swaps.
In legal documents seen by The Sunday Telegraph, Barclays is alleged to have proceeded with the sale of the complex product despite being aware from the outset of Mr Bay's "severe linguistic limitations".
Source: Barclays rocked by new claim of swaps mis-selling - Telegraph
Why give simple overdraft to business when complex tulip like that can be sold to people to feck 'em over?
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