A legal appeal by two businessmen against alleged mis-selling of controversial interest rate swaps, which could have ramifications across the leisure sector and in other industries, has begun.
Paul Rowley and John Green, who run a property business, have taken their case to the Court of Appeal after it was dismissed last December.
They claim that RBS mis-sold them an interest rate swap in 2005 by failing to inform them of the additional costs attached to the swap. The costs have totalled £400,000 against a £990,000 loan.
The case alleges that RBS did not comply with ”an appropriate, comprehensible, fair, clear and not misleading disclosure of any potential break costs”, which had been demanded by the Financial Services Authority following an investigation into interest rate swaps.
Rowley and Green are represented by Clarke Willmott LLP, which is acting for dozens of clients who claim to have been mis-sold interest rate swaps. It’s understood that pub operators are among them.
Average break costs for its clients average £353,000.
Jon Green, who represents the business partners in the appeal, said: “This is potentially a watershed case for the thousands of businesses that have been impacted by interest rate swaps.”
A final decision on the case is expected later this year.
