Member Article

North East businessman takes on HSBC as mis-sold products lead to bankruptcy

Anthony Griffiths has pledged to combat HSBC for the loss of his leisure empire, after the bank admitted that he was mis-sold three separate interest rate hedging products.

Wylam Developments Ltd & Bar Operations Ltd went into administration in 2011 after the company found it impossible to keep up with £80k worth of bank repayments.

Wylam Developments & Bar Operations Ltd owned a string of successful pubs, hotels and bars in Sunderland along with The Glass Spider nightclub, at one pointemploying 250 staff with a £7 million annual turnover.

Anthony is planning to take action against HSBC for what he claims is around £17 million in ‘consequential losses’ because of the damage the interest rate hedging products caused his business.

Anthony alleges that Wylam Developments & Bar Operations Ltd folded because he was made to sign three separate agreements on the basis they would protect the company and without them he would not be able to have any further borrowing.

HSBC has agreed that the policy was mis-sold to him without it being fully explained and has now agreed to recompense him for the amount that was paid in.

However, he believes he should be compensated for the loss of the company and the potential revenue it would have generated.

Anthony Griffiths said: “What has happened with this interest rate hedging products is similar to what has happened to lots of people with PPI,”

“There are thousands of businesses across the country which were forced into this position by their banks because they were told they would get no further borrowing if they didn’t.

“I never wanted to take this out and it was never fully explained to me what it was and this is why we lost our business.

“Now that the bank has admitted this, I am determined to fight on and get back everything I’ve lost because of it.”

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