A businessman has said he plans to start legal action against HSBC for £17m in “consequential losses” from three interest rate hedging products he claims were mis-sold.
Anthony Griffiths claimed that his firms Wylam Developments and Bar Operations went into administration in 2011 after it became impossible to keep up bank repayments on policies it “insisted” he take out. These were around £80,000 a month.
Mr Griffiths has claimed he was made to sign three separate agreements on the basis that he would not be allowed to borrow more from HSBC without them.
He said HSBC had agreed he was mis-sold the policies and that they would repay him the amount paid in. But he wants compensation for the loss of his business and potential revenue.
He added: “What happened with this interest rate hedging product is similar to what has happened with PPI. I never wanted to take it out and it was never fully explained to me. This is why we lost our business.”
He is compiling a consequential loss claim with Pwc, which they will present to the bank. If the bank doesn’t settle, it may lead to legal action.
Right to reply
An HSBC spokesman said: “The bank does not discuss individual customers, because of customer confidentiality. We are committed to ensuring that customers get a fair and reasonable outcome.
“Our review of the sale of interest rate swaps is overseen by the FCA and an independent skilled person who reviews each case to ensure this happens.”
