SWAPS Update: Is a basic redress offer fair?22 Aug 2014
Following on from our last update on the Financial Conduct Authority’s review of the sale of interest rate hedging derivative products, we have experienced clients being offered replacement derivatives, which are merely the same product rehashed with slightly different terms.
This means a ‘Swap for a Swap’, ‘a Collar for a Collar’ etc., together with a payment based on the replacement product.
This payment can be as a result much less than a complainant would be awarded had the product been swapped for a more appropriate derivative.
As Kuits’ litigation team explains: “Such an offer of basic redress can be challenged and we are advising our clients in the appropriate circumstances to challenge them.
“You should therefore consider and analyse carefully the bank’s offer before accepting it and take advice from those with extensive experience in this area before making your decision.
“Once you have accepted the redress offer it cannot be retracted.”
For more information or for assistance with any offer made to you by your bank, please do not hesitate to contact us, or call 0161 838 7807.