On the 15th June 2015 The Times ran this article reporting, “Vincent Tchenguiz, the property tycoon, is suing Bank of America Merrill Lynch for £650 million over an interest rate derivative deal that went wrong.” Whilst a claim of this size is a rarity, the number of claims of mis-selling against banks and financial advisers is increasing.
While the PPI claim messages and calls littering your inbox and voicemail probably annoy you greatly, you should not ignore it – a potential mis-selling claim could provide a considerable repayment, if handled professionally.
In previous times, bank managers were paid bonuses based on the percentage of loans on which they placed payment protection insurance, leading to underhand sales techniques and ultimately, customers being unaware of the liability they were incurring. More recently, bank managers’ targets have included the selling of more complex products, such as interest rate swaps and hedging instruments. Where customers have not been properly advised, they may be caught unawares by adverse interest rate movements or onerous break clauses, which could burden them with hefty unforeseen costs.
You should be aware of the potential refunds from improperly sold products to which you may be entitled.
To move your claim, you or your Wilder Coe Ltd partner should be able to obtain sufficient evidence through the collection of documentation received from the bank (such as early presentations and contracts, or internal bank memos from a Subject Access Request) under the Data Protection Act 1998. These could prove that the complexities were not adequately explained and the terms of the contracts were unclear, so that the product was deliberately misrepresented, or unsuitable for your needs.
Our forensic accounting team will look at the numbers and establish the amount of damages payable to you as a result of the adverse impact of the alleged mis-selling, compared to if you had not purchased the product at all. Such damages can range from the cost suffered (in terms of fees, interest charges and late payment chares) to consequential loss of profits arising from loss of opportunity as a result of your money being tied up in these products. Each claim has to be judged on its own merits.
If you or anyone you know has invested in PPI or hedging products and you would like to discuss your options further, please contact your contact partner.