Banks Accused Of Interest Rate Insurance Scam

Originally posted by 5corpio
A Sky News investigation has uncovered evidence High Street banks deliberately mis-sold interest rate protection, leaving hundreds of firms struggling to meet repayments. In an interview with Sky News, ex-Hbos and Lloyds TSB employee James Ducker claims banks flouted guidelines and put profits before customers' interests.

The products are known as 'swaps' because the bank and customer exchange or 'swap' loan repayments. If interest rates rise, the bank covers the increase in repayments for the customer. If rates fall, the customer pays a fee back to the bank. The banks contacted by Sky News said they always provided enough information to highlight the potential risks of any products they offer. But investors who entered into 'swap' arrangements claim the risks of low interest rates and exit fees were not explained to....Read more on this story---> CLICK HERE