Care Companies mis-sold TBL’s finally have viable routes to the compensation they deserve


Seneca Banking LogoCare Companies who have been mis-sold fixed rate Tailored Business Loans (TBL’s) by the banks, finally have viable routes to the compensation they deserve. In excess of 60,000 fixed rate TBL’s were mis-sold by Clydesdale and Yorkshire Bank as standard fixed rate loan products despite containing an underlying or “embedded” hedge facility.

The Financial Conduct Authority (FCA) excluded fixed rate TBL’s from their interest rate hedging product review scheme (set up to deal with mis-sold Swaps, Caps and Collars), with disgruntled small and medium sized enterprises (SME’s) having to seek compensation through the courts or Financial Ombudsman Service (FOS). However, Clydesdale and Yorkshire Bank have now set up a separate review process specifically for mis-sold fixed rate TBL’s.

Seneca Banking Consultants have had significant success in obtaining compensation payments for clients who have been mis-sold TBL’s. For example, on behalf of a Yorkshire based property developer, Seneca argued that a fixed rate TBL had been mis-sold due to serious failures by the bank to meet the standards agreed with the FCA. The client had been locked into the fixed rate TBL for 5 years, paying excessive interest on 100% of the underlying debt amount.

Clydesdale Bank agreed to a full tear up of the TBL and to place the client back into the position they would have been in had they not been mis-sold the TBL, which resulted in a seven figure pay out to the client. The Bank agreed to cancel the TBL and refund all net payments made under the TBL plus statutory interest less the sums the client would have paid under a simple Variable Rate Tailored Business Loan (i.e. fixed compared to variable).

Seneca Banking Consultants is a leading UK financial claims expert offering specialist advice to a wide range of businesses who have been mis-sold interest rate hedging products and tailored business loans. We have advised small, medium and large businesses, as well as partnerships and individuals, within nearly every sector. Any sized business from any sector could have been mis-sold a complex interest rate hedging product, such as a swap, cap, collar or tailored business loan.

The Seneca team includes highly experienced corporate financiers, chartered accountants, bankers, and corporate and commercial lawyers who together provide our clients with a first class claims management solution in relation to their mis-sold interest rate hedging claim. Unlike many of our strategic group competitors we are able to offer a full in-house solution to clients pursuing a claim for a mis-sold swap or other interest rate hedging product. Contact us today 01204 322 805 or click here


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