When the global economy crashed, much of the finger pointing was directed at the big banks. While their reputation and popularity suffered various news stories broke (often including bonuses and reluctant lending) which exacerbated the problem; one notable example was the mis-selling of hedging products.
It has been a well-reported issue over recent months and HMRC has once again stressed that it is on hand to ensure those who lost money as a result of the scandal are reimbursed. But the tax office is not the only help available – forensic accounting can also prove invaluable.
When major banks in the UK sold businesses hedging products and interest rate swaps – supposedly to protect them against interest rate rises – the businesses ended up facing crippling costs after the base rate was cut to a record-low of 0.5 per cent in March 2009. Around £3.75 billion has since been set aside from the banks to repay these costs but businesses must come forward to claim what they are owed; this is what HMRC has vocally sought to educate people about, and that is what the experts at Frenkels Forensics can use their expertise to deliver.
There are different areas of redress. Firstly there is the basic redress, which offers a repayment of the costs of the swap. Secondly there are repayments for consequential losses; these can be at a flat rate of eight per cent, a flat rate of eight per cent plus pocket losses or a calculated loss of earnings that the company missed out on because of the mis-sold swaps. The latter is where things become more complicated and this is where forensic accounting can play an important role.
Frenkels Forensics can calculate how much profit a business might be have lost out on and work to help this sum be reclaimed. Indeed, with so much money available to repay those who have been deceived by the banks, it is vital that businesses and individuals look for expert help to get back what is rightfully theirs – don’t settle for the costs of the swap itself but make sure the consequential loss of profits are also accounted for.
For help in claiming on mis-sold hedging products contact Frenkels Forensics for an expert and independent appraisal. We can help assist individuals, companies, lawyers, barristers and accountants in assessing just how much is owed.
By Vitek Frenkel – find me via Google+.