allSquare reclaim £28,000+ for East Midland Caravan Park
Mis-sold Financial Product: Fixed Rate Commercial Business Loan
Bank: Lloyds Bank
Business sector: Leisure & Tourism
Appeal outcome: FCA Review Scheme – Complaint to Bank
Appeal time: 6 months*
Claim outcome: Basic Redress: £28,000 (value of waiver)
Consequential Loss: To be identified
Total Claim: £28,000+
Having owned a Caravan Park in the East Midlands for over 25 years, our clients enjoyed a good relationship with their bank manager who had recommended variable or floating loans in the past – all of which served them well.
However, in 2008 a new bank relationship manager was introduced to our clients. She proposed a new 12 year loan but fixed at 5.35% over the full term of the loan.
Our clients signed the loan documents assuming the loan would only attract a small penalty if terminated early.
Our clients had a history of paying off loans early, so it was reasonably envisaged that they would require this flexibility.
Unfortunately, when this issue was raised with the bank, a large fee was put forward to our client.
allSquare submitted a comprehensive and robust complaint letter to Lloyds Bank detailing all the key reasons as to why we believed the loan was mis-sold.
Lloyds Bank agreed that the loan had been mis-sold. They offered a waiver of the break, or termination costs associated with the loan.
Unsatisfied with this initial offer of redress, our client wanted to press for a refund of the payments made under the Fixed Rate Business Loan, over and above that which would have occurred if they had taken out a Variable Rate Loan in the first instance.
After a short six months, allSquare have reclaimed £28,000+ for our clients (pending outcome).
We continue to negotiate with Lloyds over the formulation of an appropriate amount of redress.
In the event that both parties cannot agree, we are looking to take the claim to the Financial Ombudsman Service for resolution.