Mis-selling claims — new developments
A recent mis-selling case (Kays Hotels Ltd v Barclays Bank plc) has concerning new developments: (1) Kays Hotels was permitted to bring its claim based on a product bought in 2005, outside the normal six-year limitation period; and (2) Kays had already received compensation from the Financial Conduct Authorities Review, but in contrast to another recent decision (Clark v Focus Asset Management) was still allowed to pursue a claim against Barclays.
In 2005, Kays took out a loan of £1.34m with Barclays, repayable over 20 years at an interest rate of 1.5 per cent over Barclays’ base rate. It is alleged that Barclays representatives told Mr Saeed, one of its directors, that in order to draw down under the loan he would also need to enter into a complex interest rate hedging product. If the Bank of England base rate rose above 5.5 per cent, Barclays would pay the difference between the base rate and 5.5 per cent, but if the Bank of England base rate fell below four per cent Kays would be required to make additional payments to Barclays.
Kays brought its claim against Barclays in 2012, some seven years after the hedging product was entered into…
Click on the link below to read the rest of the Gateley briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Gateley
News from The Lawyer
Briefings from Gateley
Defendants to fraud-type claims by a company cannot rely on their own wrongdoing to escape liability for fraud.
The words ‘in the public interest’ are in the whistleblowing law, but it is open for workers to claim that a disclosure about a breach of their own contract is in the public interest.
Analysis from The Lawyer
The Law Society recently published guidance to assist solicitors draw up Shariah-compliant wills, causing outrage in some quarters. Gateley’s Haroon Rashid explains the facts.