The Sunday Times
Kiki Loizou Published: 26 July 2015
Lloyds Banking Group has settled a claim with a care home operator over the mis-selling of an interest rate swap (Alamy)
A BUSINESSMAN has settled a two-year legal dispute with Lloyds Banking Group over the mis-selling of an interest-rate “swap”.
Errol Bland of Buckinghamshire-based care home operator Coin Group has won a £4.6m claim, which covers a multimillion-pound break fee on a 30-year interest rate hedging deal the bank advised him to take on a £1.7m four-year loan. The case was settled out of court two weeks ago.
“Not only have we had to put our business growth plans on hold for the past 5½ years, but we have had to incur legal and professional costs to defend ourselves against something that was mis-sold to us,” said Bland, 50.
He will be reimbursed the £900,000 he made in interest payments and £200,000 for his legal costs.
About £3.5m will cover the sum needed to cancel the contract. Lloyds denied any wrongdoing. “We are pleased that this now concludes the matter for the bank and the customer,” it said.