Thousands of SMEs legally gagged in calls for banking justice

The Daily Mail has published an article based on sworn testimony given by Lloyds Banking Group whistleblower, James Ducker, in 2011.

In his testimony, James confirms much of what Bully-Banks has alleged over the last three years about the culture within our major high street banks.

The testimony given in 2011 has not been disclosed before because of a gagging order imposed by Lloyds Banks when they settled a claim by Wingate Associates in connection with the mis-sale of an Interest Rate Hedging Product (IRHP). Lloyds agreed to pay Wingate’s £8 million break cost and to refund £1.5 million paid by Wingate under the IRHP. In exchange they imposed a gagging order.

Bully-Banks’ Chairman, Jeremy Roe, states that gagging orders imposed by banks on their customers have impeded justice for thousands of SMEs who have been substantially damaged by the misconduct of their banks. He adds:

“The most senior executives at Lloyds (including the head of Lloyds’ legal department who must bear a particular responsibility) and Lloyds’ external solicitors have been aware of James Ducker’s sworn testimony for some years. Yet still Lloyds seeks to deny liability to thousands of SMEs damaged by Lloyds when it sold these toxic products.”

Guto Bebb, Chairman of the All Party Parliamentary Group (APPG) on Interest Rate Swap Mis-selling adds:

“This is yet another example of how the banks continue to fail and continue to harm the very same SMEs they damaged in the first place with the mis-selling of interest rate hedging products. These businesses deserve justice.”

Bully-Banks is calling for all gagging orders imposed on customers settling their claims for the mis-sale of IRHPs to be waived by the banks:

“By imposing gagging orders the banks are seeking to deny justice to the thousands of SMEs damaged by the mis-sale of IRHPs.”




Image credit

You might also like More from author

Leave A Reply

Your email address will not be published.

Username field is empty.