The Apprentice boss Lord Alan Sugar has complained to Lloyds Banking Group over its sale of a hedging product on a loan secured against part of his property empire…
Lloyds has received a letter of complaint from Lord Sugar, who according to one source, is seeking the return of about £10 million in break fees paid to Lloyds to cancel the interest rate hedging contract returned, reports The Telegraph.
According to the title, Lord Sugar is understood to be considering legal action if his complaint is unsuccessful. The derivative is thought to have been for £97 million and taken out to protect against a rise in interest rates on a Lloyds loan.
Lord Sugar’s complaint makes him the most high-profile business owner yet to be linked to the mis-selling interest rate hedging product scandal, which saw thousands of smaller businesses across the country sold complex derivatives linked to interest rates. The products ended up costing them hundreds of thousands and even millions pounds in costs many say they were never warned about.
Lloyds, along with all of the UK’s other major lenders, including Barclays, HSBC and Royal Bank of Scotland, signed up in June 2012 to a redress scheme for victims.
Barclays has made by far the largest provision against swaps mis-selling, putting aside £1.5 billion to compensate customers, while RBS has made a provision of £750 million. Lloyds’ provision currently stands at £400 million, slightly more than the $598 million (£385 million) put aside by HSBC.
However, more than a year on from setting up the compensation process, no money has been paid out.
At Abacus, we offer a unique and dedicated service in the process of Interest Rate Swap (IRS) claims against banks and other financial institutions.
We have brought together a specialist team from the world of business, finance and law, and with this expertise we are able to provide our clients with an unrivalled, comprehensive and straightforward service in a very complex area of litigation.
If your business has been sold a loan in the last 10 years, you may be able to register a claim. Many loans were sold with add-on products that may not have been needed or wanted, and often the lenders would make these products an integral and conditional part of the loan.
We can help you.
Call us on 0161 833 0044 for an immediate no obligation consultation
Register your claim with us now online and we will contact you today to assess to your case
Email g.jones@abacus-law.co.uk with details of your loan and one of the IRS Solicitors will be in touch with you today.