Interest rate swap agreements are complex financial products that were designed to protect against rising interest rates.
What is an interest rate swap agreement?
Many businesses with loans were given the option to swap their variable rate loan to a fixed rate loan on the belief that interest rates were going to continue increasing.
But interest rates dropped and many businesses found themselves stuck with higher rate agreements. These agreements required them to pay higher rates of interest and some businesses were even unable to withdraw and had to keep paying higher rates.
Examples of interest rate swap agreement negligence
If one of the following apply to you, then you may have been mis-sold your interest rate swap agreement.
- It was implied or it was a condition of the loan that you could only apply if you agreed to a swap agreement.
- You were not advised what would happen if interest rates dropped.
- The lender knew that the interest rates would drop but you were still advised to swap to a fixed rate agreement.
- You were not advised that large exit fees could apply if you wished to end the agreement.
- You were not advised on how to end the agreement.
- It was not explained to you that the new Interest Rate Swap Agreement would be longer than your original agreement term.
- You were not advised on the lender’s ability to end the swap agreement.
However there are many more ways in which you may have been give negligent advice on your interest rate swap agreement. If you would like to find out more, get in contact on 01924 457171 for a no obligation, free consultation.