The director of the Coin Group care home company, Errol Bland, has recently won an out of court settlement with Lloyds Bank in the latest case involving the mis-selling swaps scandal.
London law firm, Lexlaw, acted on Bland’s behalf to claim back compensation on a 30-year hedging product bought eight years ago. Compensation had previously been refused on the grounds the borrower was too ‘sophisticated’ and knew the risk involved.
However, Bland is now being paid back £900,000 in interest payments, £200,000 in legal fees and an expected £3.5 million from a break fee after litigation forced the bank to pay up and avoid judicial scrutiny.
Back in 2012, an investigation by the FCA decided Coin Group and thousands of other SMEs should be denied compensation because the size of assets involved proved they were well aware of the risk. This, for many companies, was simply not the case. Many are now fighting to claim back what they should have been entitled to in the first place.
Bland’s settlement is an encouraging sign to SMEs that there is a chance to reclaim what’s rightfully owed. Read more about Lexlaw’s case here.