There has been much media hype regarding the mis-selling of financial products to consumers but businesses could also be in line for refunds. Small businesses are now claiming that they too have suffered both financial losses and cash flow issues as a result of being mis-sold inappropriate products.
Commenting, Gerald Irwin of Sutton Coldfield based Licensed Insolvency Practitioners and Business Advisers, Irwin Insolvency said, “For those businesses believing they have been sold an interest rate hedging product, the course of action is very much dependent upon the type of product sold and the size of the business. For the sake of the Financial Services Authority review, businesses are currently being separated into sophisticated and non-sophisticated categories but the whole crux of the matter is the allegation that banks sold highly complex financial products to businesses that lacked the capacity to determine their suitability.”
The Financial Services Authority has attempted to keep the process as simple as possible particularly for small businesses and has emphasised that these firms neither need to employ or pay for third parties to bring complaints on their behalf. However, if any small business is in doubt they should either contact the FSA directly or seek independent advice.