Lawyers Moore Blatch, which specialises in supporting businesses that were mis-sold interest rate hedging protection, is urging up to 10,000 businesses that the time limit for pursuing a claim against their bank is running out.
The issue is crucial to many hotel businesses which were often sold these products alongside their business borrowing.
Moore Blatch is warning that there is a six year cut off for most claims and, as the peak of mis-selling by banks and other financial institutions took place up to 2008/ 2009, time is running out to make a claim.
Many businesses could be owed thousands, sometimes millions, of pounds for being mis-sold products that promised to protect against the movement in interest rates on their borrowing, ranging from conventional loans through to hire purchase agreements.
According to the FCA, around 10,332 cases are still awaiting resolution within the FCA review scheme, which was set up to identify and resolve cases of mis-sold hedging products.
Rob Evans, partner and head of professional negligence at Moore Blatch, said: “Whenever we are approached to consider a compensation claim, whether the company falls inside or outside of the review scheme, the first thing we do is identify and protect the potential six year limitation on making a claim. There are ways in which the time limit can be extended if we are instructed in time. However, even where the facts support an extension of the six-year period, any extension will only be for a finite time, so restaurant and hotel businesses really must act now. If a business believes that it may have claim to compensation, but is concerned that it may run out of time, they should seek legal advice as soon as possible.”