Willott calls for justice for Cardiff ‘Swap’ victims

October 25, 2013 10:41 AM

Left to right Paul Titterton, Barclays Regional Director, Geraint Jones, Barclays City of Cardiff Branch Manager, Jenny Rathbone, Gary Speed, Jenny Willott MP, Barnaby Davies Managing Director of Barclays UK Branch Network & Carl Hynes Barclays Direc ()

Welsh Liberal Democrat MP for Cardiff Central Jenny Willott has called for justice and fair play for those small businesses in Cardiff which have been devastated by mis-selling of interest rate hedging products (IRHPs) by banks.

In 2012, the Financial Conduct Authority (FCA) identified failings in the way that some banks sold IRHPs. The banks involved agreed to review their sales of IRHPs made to certain customers since 2001, and the full review began in May 2013. However, despite millions being spent administering the scheme, the money is not getting through to the estimated 40,000 businesses across the UK which are thought to be affected.

Commenting Jenny Willott said:

"I've been in touch with many constituents about the interest rate swap misselling scandal, and the way the FCA is handling the Review. Indeed, I met with some constituents only today to discuss how their case was progressing.

"Unfortunately it is clear that things are not moving as quickly as they should be, and that is causing huge problems for small businesses in my constituency who are continuing to have to pay out for these swaps whilst they wait for their case to be reviewed. Some people are having their houses repossessed or going bankrupt while they wait.

"Given the FCA clearly determined back in January that over 90% of small businesses caught up in this scandal had been mis-sold hedge products, this is neither fair nor just. Those who deserve compensation should not be left waiting any longer. I am putting renewed pressure on the FCA and the banks to speed up the pace of work in resolving this issue."

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