Member Article

Wales Law Firm Wins £380,000 from Bank for SME Transaction

Cardiff based law firm, Triumph Legal Solutions, has recently settled a claim for a former Wales based SME for £380,000. The claim, which involved complex financial transactions of nearly £1 million, was started by the business in 2011, however, the final stages of settling the matter has been handled by Triumph over the past 3 months to bring a satisfactory end to the dispute for all parties. This is believed to be the first settlement of its kind in Wales and has avoided an extended legal process for compensation.

Triumph Legal’s Managing Director and Barrister, Steffan Jones, said, ‘these complicated financial instruments have caused considerable losses and stress for SME victims. In Wales we are hoping to resolve the mis-selling of SWAPs mortgages to Wales based SMEs in a fair manner. The banks were supposed to payout settlements by the July 2014, however since that time we understand that less than half of a fund has been paid to SMEs.’

Recently, the Federation of Small Business Wales (FSBW) claimed that business owners need protection from the banks in the latest mis-selling scandal and that SWAPs mortgages have pushed firms into administration. FSBW further stated that the compensation scheme is complicated and that there is no help for victims in Wales. FSB Wales also stated that it is ‘very difficult for a small person from Wales taking on the banks.’

Triumph Legal Solutions are urging Wales based SMEs & residential victims who think they have been mis-sold a SWAPs mortgage (Interest Rate SWAP Agreement) to act quickly and in a coordinated manner, since the deadline for banks to settle claims passed on 1st July 2014.

Last month Reuters US reported that, ‘Bank of England condemns UK banks and says that they have a dreadful record of mis-selling complex interest rate SWAPs. The BoE will remain vigilant of this practice.’

A spokesperson for Triumph Legal Solutions said, ‘changes in 2014 must be real because the culture of mis-selling is not sustainable. Political attitudes have changed since 2008 and policymakers must take this opportunity and use the regulators to make the monetary system fair at all levels. If you look at the sheer size of the mis-selling problem – it cannot be ignored. Banks bring economic wealth to communities – but they also erode economic development if they do not treat customers fairly. This is probably having a negative impact on local businesses and communities in Wales.’

The UK regulator Financial Conduct Authority (FCA) established earlier this year that victims are struggling to obtain redress through the banks’ self administered schemes, being rejected altogether despite these serious failings or the major banks are seeking to delay payments. The SWAPs failures are as serious and damaging as the ongoing PPI mis – selling scandal and are eroding customer confidence.

So what help is there for Wales SMEs? Few law firms can handle these claims, however, the issue has become a UK and US wide issue that even handling a claim is complex. Triumph Legal Solutions will be spearheading a Wales wide ‘SWAPs E - Forum for SMEs’ in 2014 and 2015 to help SMEs understand and act on any financial mis-selling matters. Triumph Legal Solutions has also led class action lawsuits in the UK. A spokesperson for Triumph Legal Solutions said, ‘We are working with a network of law firms in the UK to advise a number of Wales SMEs and individuals with regard to the financial services mis-selling. SMEs have been let down through the failure of lenders to inform them of their rights to claim and this may also lead to enforcement action by the lender. It is crucial that victims seek legal advice so that they can make an informed decision and find decent representation. We are keen to help Welsh businesses to recover sums that are due to them. In the current economic environment it could mean the difference between SMEs surviving tough trading conditions. If you think that you have been affected, Triumph Legal Solutions can provide a high standard of advice and representation.’

Contact Triumph Legal Solutions. T: 02920 – 026 511

www.triumphlegal.co.uk.

Email: wales@triumphlegal.co.uk

Twitter: @TriumphLawWales

This was posted in Bdaily's Members' News section by Triumph Legal .