The Financial Services Agency (FSA) has been doing its best in making certain reviews in light of the interest rate swap scandal that has been affecting small business and business owners in the UK. Business leaders want more action in responding to the scandal. An organization called the Federation of Small Businesses and the Bully Banks that has been representing the small business sector are not that satisfied with FSA’s report. A review on the scandal was conducted by different banks to put clarity into the ongoing scandal.
The announcement made by the FSA says that the small business that was affected would need to prove that upon purchasing the product, they weren’t clarified about it or knew less about the terms of the interest rate swap. The groups have complained that the FSA have been ignoring their calls. A spokesperson from the FSB added that they knew a little about the process and what has been happening. Most of the business establishment continues to give their pay out while waiting. It was reported that this could drive them in to financial problems while waiting for their claims.
The interest rate swap scandal emerged when different banks were mis selling interest rate swaps that were complicated and often not even explained. The small businesses purchased the product when the banks offered the loans. With the onset of the recession, the Bank of England was made to cut its interest rates to help UK borrowers, but the businesses who had bought the interest rate swaps were stuck into paying higher rates only. Now, most of the banks are cooperating with the FSA to undergo the reviews.
Source: http://www.coffeecornernews.com/finance/action-needed-on-the-interest-rate-swap-report-demanded-by-the-small-business/
The announcement made by the FSA says that the small business that was affected would need to prove that upon purchasing the product, they weren’t clarified about it or knew less about the terms of the interest rate swap. The groups have complained that the FSA have been ignoring their calls. A spokesperson from the FSB added that they knew a little about the process and what has been happening. Most of the business establishment continues to give their pay out while waiting. It was reported that this could drive them in to financial problems while waiting for their claims.
The interest rate swap scandal emerged when different banks were mis selling interest rate swaps that were complicated and often not even explained. The small businesses purchased the product when the banks offered the loans. With the onset of the recession, the Bank of England was made to cut its interest rates to help UK borrowers, but the businesses who had bought the interest rate swaps were stuck into paying higher rates only. Now, most of the banks are cooperating with the FSA to undergo the reviews.
Source: http://www.coffeecornernews.com/finance/action-needed-on-the-interest-rate-swap-report-demanded-by-the-small-business/
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