Barclays to pay £1.5m compensation, says interest-rate swap claimant

Barclays Crest Sign

A holiday resort owner from Cornwall said on Friday he would receive £1.5m in compensation from Barclays for a mis-sold interest rate swap.

Bill Haslam, a director of the Bully Banks campaign, has been fighting Barclays for the compensation for the last three years and has now settled part of his claim against the bank.

However, Haslam's Landish Consultants will not receive any compensation until agreement has been reached over further losses caused by the financial hardship brought about by the initial interest rate swap.

The need to agree to these so-called consequential losses means Barclays has not yet paid out to any customers claiming compensation for mis-sold interest rate swaps, which were intended to protect customers against interest rate rises.

The process of compensation is being overseen by the Financial Conduct Authority, which has set out rules on how each of the types of interest-rate hedging products should be handled by the banks.

According to Haslam's solicitors, Slater & Gordon, this the largest sum offered so far by Barclays. Fraser Whitehead, head of group litigation at Slater & Gordon, which represents 250 customers claiming they were mis-sold interest rate swaps, said: "It has been a long fight and this is the first significant result anyone has had, so we are proud to have been leading the way in securing that," said Whitehead.

Barclays said it was replacing the initial swap sold to Landish with a less complicated method of protecting him against changes in interest rates. "The review continues towards Barclays making Landish a final redress offer. We are pleased to be making positive progress with the review," the bank said.

Haslam, who is expected to remain an active campaigner for the Bully Banks campaign, said: "I feel Barclays are starting to behave fairly to its customers, and treating us with respect".

Powered by Guardian.co.ukThis article was written by Jill Treanor, for guardian.co.uk on Friday 19th July 2013 18.33 Europe/London

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image: © Howard Lake

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