Partner Article

Berg appoints interest rate swap specialist

Manchester-based law firm Berg has appointed a specialist solicitor to lead its campaign, which supports businesses that have been impacted by the mis-selling of interest rate swaps.

Kalvin Chapman has joined Berg from Ashton Fox Solicitors and in his new role will work within the dispute resolution team focusing on litigation cases involving interest rate swap hedging agreements.

Berg has received a large number of enquiries from concerned businesses that feel they were mis-sold interest rate swap products. Although the agreements would guard against increases in interest rates, many businesses believe that they were not informed properly of the financial implications if interest rates fell or the cost to exit the agreement, and other issues covering the sale of the hedges.

Alison Loveday, managing partner at Berg, said: “The rate of small businesses coming to us that are suffering from these interest rate swaps has only increased since the FSA report into the scandal. This is a massive issue not just for the thousands of small businesses affected but also for the banks that have another crisis on their hands.”

Kalvin Chapman added, said: “I am already working with a number of businesses that have been crippled by the payments, including one client that had to sell an entire arm of its business to be able to pay the exit fee. Another business, a boutique hotel, went bankrupt as a direct result from the interest rate swap agreement. We are encouraging businesses find the right support and address the issue with their banks.

This was posted in Bdaily's Members' News section by Berg .