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SME Anguish

Posted: November 19th, 2016, 10:53 am
by swynn
From Bully Banks:

"It is therefore clear to me and no doubt many others that the FCA Review and Redress Scheme is not fit for purpose and is allowing the continuing, systematic abuse of SMEs by the banks.

It is simply not conceivable that an SME suffers no financial loss by being mis-sold a carcinogenic, contractually crippling, entirely unsuitable financial product by its bank, and is then forced to become embroiled in a stressful, complicated, protracted, unbalanced, unfair, non transparent, time-consuming review process overseen by the perpetrator organisation itself to try and achieve justice and proper recompense."

From Ian Fraser:

"Under Fred Goodwin, RBS was the UK’s biggest peddler of these derivatives, which Barclays chairman Sir David Walker believes should never have been sold to small businesses.

In a mis-selling spree that peaked in 2005 to 2008, ex-insiders suggest the bank deliberately targeted SME borrowers who were in a ‘vulnerable’ position – perhaps they were refinancing or extending their borrowings at the time – and who also had property assets worth a multiple of their total borrowings.

The bank used a set methodology to cajole selected commercial customers into buying the swaps, also known as interest rate hedging products (IRHPs), which, in more than 90 per cent of cases, were neither requested nor desired by the customers. The sequence went roughly as follows: " ... ate-swaps/ ... ss-scheme/

Re: SME Anguish

Posted: November 21st, 2016, 4:56 pm
by rungsp
I spent 25 years in this world....not (I stress!) the selling/coercing unsuitable products bit, but in Bank's Risk, Investing and Hedging.

In the last few years I have given Expert Opinion to several SMEs arguing their case against banks who "persuaded" them that that needed totally unsuitable "hedging" products when they were trying to get simple business lending arranged.

Some of the evidence and practices I have seen are utterly disgraceful...some are merely inappropriate.

Every company I have helped has won its dispute, all of the settling out of court.

My key bit of advice would be:
Get Legal, and get going.
Always act as if you are 100% going to Court....but in the full knowledge that it will not go to Court because Banks ALWAYS settle (Pedant Alert: please don't find the one case where they didn't...!)

Re: SME Anguish

Posted: November 22nd, 2016, 11:15 am
by swynn
"Some of the evidence and practices I have seen are utterly disgraceful."

How does this square with "fair treatment of customers" on the FCA's website?