Bank Swaps What are they?
Interest protection insurance knows as “Bank Swaps” is the means in which bank and their customers exchange or swap credit repayments terms. For example the bank will cover the interest on the credit loan should future interest rate rise, in another words the bank will covers the increase in repayments for the customer.
Likewise if interest rates fall, the customer simply pays a set monthly fee on top of their loan back to the bank each month.
Bank swaps products may sound attractive during the heyday of 5 – 6 and half per cent interest rate. With the current all-time low interest rate, customer who takes out this kind of policy may find themselves out of pocket for as long as interest rate remains all time low.
Bank Swaps Another Misspelling?
But many investors who took out Bank Swaps products arrangements now believe the bank did not properly explain to them the risks of long term low interest rates and exit fees clause.
Customer who bought this products are now claiming that the bank never properly explain to them that the bank stand to win regardless of which way interest rate goes, up or down. Many now believe that this is another bank misspelling products as it appear now that whatever happen the bank stand to gain regardless of whether rate go up or down. Many investors now believe that the bank was more protected then the customer and the risk was never emphasise enough to them.
Bank Swaps was a complicated products
Even The Financial Services Authority (FSA) recommends Bank swaps to be sold to investment professionals due to their complexity. But it is claimed Bank swaps were marketed and sold to ordinary investors, who merely understand the risks of Bank swaps. Many high street Bank is believed to have sold over 150,000 of these products.
If you believe you where miss sold one of this Bank swaps products it’s time to act, by seeking a legal advice to see if you can make a claim for compensation against the bank.
The Bank claim they provides enough information to their customer to enable them to make an informed, financial decision about the Bank swaps products it offers.
Meanwhile, solicitor, are now taking enquiries from affected people around the country, from individual to small businesses alike who had been affected by Bank swaps.
Many high Street banks who sold so called bank swaps are now bracing themselves for a possible yet another wave of claim similar to those brought by people with mis sold PPI products.