Avenues for Redress

If a customer considers that s/he has been mis-sold a product a formal complaint should be made to the advisor pursuant to its complaint procedure in order to give it an adequate opportunity to rebut any allegations or make redress at an early stage.

If this does not resolve matters and if the customer is eligible (it must have an average turnover of less than €2 million and have no more than 10 employees) a complaint can be made to the Financial Ombudsman Service (“FOS”). The FOS is a free service and can award compensation of up to £150,000 and also has the power to make a non-binding award for a higher payment. However, the judgement in Andrews v SBJ Benefit Consultants in 2010 confirms that consumers with losses exceeding £150,000 cannot obtain the first £150,000 via the FOS and then sue for the remaining balance in the Courts. Once an award from the FOS has been accepted no claim can then be made at Court in respect of that complaint. Clarke Willmott would not usually recommend the FOS for any claim for more than £50,000 - £75,000 or a commercial agreement dispute. Its procedures are erratic and sometimes unsatisfactory. The FOS simply does not have the experience and knowledge of interest rate swaps to deal with complaints adequately.

Compensation may be claimed for the entire loss through the Courts and (if successful) costs can also be retrieved from the defendant. Clarke Willmott has a team that specialises in the mis-selling of these products and similar. We have been instructed by clients who have been mis-sold a number of interest rate swaps including, an interest rate swap, cap and collars, structured collars. We are happy to look at your documentation and, in appropriate cases, we are prepared to undertake instructions on a Conditional Fee Agreement ("no win, no fee") basis. We are also in a position to offer clients an opportunity to enter into an After the Event Insurance Policy - which covers the defendant's costs and your disbursements (such as Counsel’s fees) if you are unsuccessful at trial.

For further information, please contact Robert Morfee, Clare Harries or Catherine Zakarias-Welch