At the end of last month, the Financial Conduct Authority (“FCA”) published updated statistics in relation to claims for consequential loss made by customers who were mis-sold interest rate hedging products (“IRHPs”). The statistics highlight our understanding that the banks are attempting to limit their exposure and take advantage of an apparent lack of supervision by the FCA and Independent Reviewers.
The FCA last published statistics relating to the progress of so-called “bespoke” consequential loss claims in September 2014; it has now published updated statistics up to December 2014. Bespoke consequential loss claims have been made by those customers who believe that they have suffered a loss in opportunity as a result of the mis-sale of an IRHP which is not compensated by the 8% interest the customer received when receiving its basic redress offer. Unfortunately, the statistics show that the banks are continuing to keep a tight grip on the purse strings holding the billions of pounds they have set aside to compensate customers.
A comparison of the September and December 2014 statistics taken from the FCA website shows that progress is slow and disappointing:
|
September 2014 |
December 2014 |
Progress of bespoke consequential loss claims |
Number of customers who have submitted a bespoke claim |
2,965 |
3,620 |
% Assessments complete |
1,535 |
2,294 |
% Assessments complete |
52% |
63% |
Analysis of completed assessments of bespoke claims (amount payable over and above 8% a year) |
No additional redress |
871 |
1109 |
£1 to £9,999 |
502 |
953 |
£10,000 to £99,999 |
151 |
221 |
£100,000 to £999,999 |
11 |
11 |
Consequential losses payable |
8% a year added to every offer |
£305m |
£357m |
Additional losses payable over and above 8% a year |
£5m |
£8m |
Total consequential losses payable inclusive of 8% a year |
£310m |
£365m |
Average consequential loss payable inclusive of 8% a year |
£32,000 |
£32,000 |
In the last 3 months, the banks have continued to make nominal offers of consequential loss in the £1 to £9,999 bracket; not one customer has received an offer of consequential loss redress above £99,999 and average consequential loss has remained resolutely at £32,000.
Taylors is continuing to support clients who wish to pursue consequential loss claims by seeking accountancy and valuation support, involving local Members of Parliament and challenging bank determinations. If the 8% interest you have received has not compensated you for your consequential loss or the offer you have received represents another attempt by the bank to “handle” you, please get in touch.
Taylors is different from the vast majority of commercial law firms in that we do not have any allegiance to the banks and we are not on any “bank panels”. If would like to discuss your situation in more detail, please contact tony.catterall@taylors.co.uk or call 0844 8000 263.
|