A law firm with offices in Huddersfield has reached a £10m milestone in recovering compensation for SMEs and individuals who were sold unsuitable Interest Rate Hedging Products (IRHPs).
In 2012, the Financial Conduct Authority (FCA) identified serious failings in the way banks sold these complex products – finding that IRHPs were mis-sold on the basis that they would provide protection from future adverse interest rate movements.
IRHPs were sold to customers, described by the FCA as unsophisticated and these customers faced substantial regular payments under the terms of the agreements and breakage costs, often running into the £100s of £1000s to exit the agreements.
At an early stage of the review process, law firm Chadwick Lawrence identified that there was an imbalance where the banks relied on their own independent solicitors to carry out fact finds, but encouraged customers not to seek legal representation.
The law firm reacted by developing a team of dedicated banking and financial specialists to deal with these cases, resulting in hugely significant settlements for 65 clients over the past two years.
Chadwick Lawrence now work closely with forensic accountants, derivative experts, financial advisers and insolvency practitioners and has built an enviable reputation in finance and banking litigation – so much so that they are now the go-to Firm for this area of legal service, a significant growth for the company.
Dan Hirst, associate solicitor at Chadwick Lawrence, said: “We have recognised a growth area for the firm and have dedicated time and resource into building up our skill-set to deal with all financial and banking matters, with great success.
“Whilst for many the review process is coming to an end, we continue to receive instructions from those who have been unsuccessful in the review, those who have changed solicitors to take advantage of our expertise in the field and to those who are seeking assistance with the sale of embedded hedging products.
Robert Brackup, partner at Chadwick Lawrence, said: “Over the past two years, we have successfully reclaimed millions for our clients. Consequently, we are now approached by accountants, financial institutions and other solicitor firms to work with or advise on similar finance and banking cases.”