In the article, The Gazette explains how despite figures in the tens of billions of pounds, victims of swap mis-selling have only been able to claim back around £2bn, with lawyers blaming the fact of failues on how the official compensation scheme has been set-up. This scheme had been created for the purpose of assisting SMEs and began in 2013 with over 3000 bank employees being involved in assisting its functioning at its peak, according to the Financial conduct Authority.
Speaking in the article, Mr. Sachdev states; “The compensation scheme, if conducted done properly, would have paid out £20bn.” He goes on to say, “When it comes to consequential loss, under the review scheme people are getting back zilch. By contrast, most of the 480 disputes Vedanta have advised on outside the scheme were settled by the banks and included significant payouts for consequential losses. The case law is still in favour of the banks. They aren’t prepare to risk that.”
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