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The problem with Fixed Rate Business Loans
This particular mis-selling applies to cases where the interest on the loan was fixed for a period of time. E.g. you agree to pay the bank 6% interest fixed for 10 years on your business bank loan.
This means that if interest rates (Bank of England Base Rates) fall, then you don’t benefit from this fall as you have agreed the
The other risk is that if you try to pay off the loan early, then typically there are high repayment (or break) costs if you want to do this. Again, these break costs should have been properly and fully explained to you at the point of sale.
Which banks have been affected?
Most of the main UK high street banks have sold fixed rate business loans at some point in time over the last 10-15 years. We have been winning claims against:
The sales process of Fixed Rate Loans
In order to make a claim, the loan does not need to still be running; so you could have already paid off the loan early, refinanced or just let the loan run its course and still have a claim. What is important is whether the risks of the fixed rate loan were explained at the point of sale. We have been claiming for loans sold after 2001 that matured some time ago.
How big is the problem?
The FCA estimates that more than 60,000 SMEs could have been mis-sold fixed rate loans. We are seeing many instances of these loans being sold to the Dentistry and Healthcare industries.
Our free 5 minutes promise
If you think that you may have been affected by the issue described in this article and are unsure whether you have a potential claim, they please call us to take advantage of our free 5 minute promise. After a short conversation with one of our banking claims consultants we will tell you whether we think you have a claim.
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For more information contact Daniel Hall, Managing Director at allSquare - Business Banking Claims on 0113 323 1950 or email: firstname.lastname@example.org
Professional Dentistry is a service provided by Practice Enterprise Ltd. Registered in England & Wales. Company Registration No. 05098852. Registered at MacMillan Building, Parcel Terrace, Derby, DE1 1LY. VAT Registration Number 859246388.