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Non sophisticated customers


Lawdit Solicitors - Expert Author

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30 June 2012

FSA identifies victims as non sophistacted, you are even insulted when you've been wronged.

Yesterday the FSA published a press release> and a useful fact sheet <> confirming it had agreed a settlement with four banks over mis-selling of interest rate swap and other hedging products.

Many SMEs suffered. Many bright, intelligent, well educated and worthy individuals were ripped off by hopelessly greedy people. Sadly the greedy people are sophisticated and the victims are not sophisticated.

The failings (estimated to have started about 2001) were serious and included the usual inappropriate behaviour as the 4 high street banks continued to sell complex varieties of interest rate hedging products, failing to ascertain the customers' understanding of risk, failing to advise on non-advised sales and over hedging.

Many individuals were highly rewarded as their greed took over. It was only a matter of time before they were found out. The FSA and the four banks have agreed to compensate fair and reasonable redress to non sophisticated customers.

Have you noticed we are called non-sophisticated as if this con is based on a complex art, bordering on molecular science when it's really a question of ethics and morality. If a client comes to see me and I advise them, they would expect to be treated fairly, ethically and above all I must not deceive the client and confuse them as they too are not sophisticated (whatever that means).

In short the greedy have systematically deceived their customers and I hope they are brought to justice and hit hard both in the pocket and if the evidence supports the facts via the criminal justice system.

The FSA confirmed that the banks' chief executive officers have personally confirmed that they will have responsibility for oversight of the compensation package which begs the question as to where were they when this practice was in full throw?

Are you a SME which has been sold a product which falls under the SRA factsheet? If so get in touch today.

Michael Coyle is a Solicitor Advocate and heads up the litigation team at Lawdit. He can be contacted at Lawdit is a commercial law firm based in Southampton.

About the Author

Lawdit Solicitors offer services and advice for litigation, commercial contracts, Intellectual Property and IT legal agreements. We are experts in commercial law with a heavy emphasis on Intellectual Property, Internet and e-commerce law. Lawdit is a member of the International Trademark Association, the Solicitors' Association of Higher Court Advocates and we are the appointed Solicitors to the largest webdesign association in the world, the United Kingdom Website Designers Association.

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Article Published/Sorted/Amended on Scopulus 2012-08-03 09:04:07 in Legal Articles

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