In the Treasury Questions on 12th March 2013, Jim McGovern MP asked a question to the Treasury Minister Greg Clark MP about his constituent Mr James Boyle.
Mr James Boyle (who along with others in this position has used Vedanta Hedging’s advice on this issue) has a Fixed Rate Loan TBL with Clydesdale. This is a loan with an embedded interest rate swap. So far, Clydesdale have agreed to review all TBL products except those that just have a fixed rate.
Vedanta Hedging have been campaigning with the FSA, Ministers, MPs, the Media and assisting Solicitors and QC’s to challenge these cases.
Greg Clark MP confirms that Mr Boyle’s case will be reviewed by Clydesdale. This potentially means that all other cases of Fixed Rate TBL’s should and will be considered by Clydesdale and Yorkshire to be part of the review; since this precedent has now been set.
This potentially has large ramifications for other UK Banks that have also provided hundreds of thousands of fixed rate loans with embedded swaps.
The full video of Greg Clark’s statement in Parliament can be seen here: