ANOTHER MEMBER’S EMAIL TO THE NEW CEO OF THE FCA
Another Member’s Email to the new CEO of the FCA
Set out below is a second member’s email to Andrew Bailey.
These two members’ emails illustrate so clearly the failures of the FCA and the failure of the FCA Redress Scheme. Each is a powerful indictment of the FCA. Imagine the impact upon Andrew Bailey of some hundreds of emails like this. That is what is needed now.
We are receiving a lot of emails confirming that members have emailed Andrew Bailey and many are providing a copy of their emails. May we suggest that members also post their emails on the Bully-Bank Forum. Each of them illustrates why it is vital that we keep campaigning as a collective. Do keep the emails focused and relatively short.
IF YOU HAVEN’T YET DONE SO PLEASE EMAIL ANDREW BAILEY NOW!
(And do remember to copy John Griffith-Jones and your own MP.)
Dear Mr Bailey,
I am writing to you as Chief Executive of the FCA in connection with the total failure of the redress scheme to make reparation for me, for the immense damage caused to me and my fellow Director, which I estimate has cost us in the region of £7m in loss. I am 55 years old my partner was 68 at the time of his recent death. He died a broken man after building a successful retail business over 22 years. He also had a personal guarantee to the bank which now cannot be collected but added even greater stress on him.
We were a public house management company and by 2006 we ran 23 public houses, employed circa 230 people full and part time. A successful and profitable business. The property assets held by the company were valued at around £12.5m Our borrowings were around £7m. Reasonably comfortable even the most pessimistic would think.
At the end of 2005 we were given no choice by Barclays Bank, our bankers we trusted and had done over the previous 15 years, that we enter into several Structured Cap and Collars, to “protect ” our business from interest rate increases that they assured us would happen. These products were for 10 years and 95 % of our borrowings. These structured products we were told had no cost to the company.! They were therefore ” no brainers”. We were never offered alternatives such as a simple cap which would have done exactly what was ” needed”. We were lied to and the position completely mis represented. We never were told the banks ” adviser” ie salesman who mis sold us the product was earning commission. The bank was taking a huge profit from the ” no cost ” to us deal. Neither were we told that effectively we were taking a huge risk with our company and its assets. Why on earth would we ever have taken a risk with our assets had we have known the damage that could be caused to us by doing so?
We had worked hard for years to build it!
Following the fall in interest rates to .5% my company had to pay unexpected costs in interest over 3 years of circa £1.3m which caused colossal problems. We disposed of several properties to the value of £1.5 in an attempt to survive. The mortgages were paid down but we were still exposed to the vast interest rate hedge we had been forced into. We were subjected to huge additional costs forced on us by Barclays, as a result ensuring the companies position worsened rather than improved having been placed in their “business support” division! The end game it seems to me was to destroy our business. We were refinanced by Barclays in May 12 the figure to ” escape ” the remaining 4 years of the swap was £949,000 which was added to our debt along with the ” arrangement fee of 1% of the refinancing a further £77,000 all borrowings on an on demand basis. Six working days after the refinancing Barclays withdrew support for our business and appointed administrators.!
The FCA say that the products ” sold ” to us are category A swaps and particularly vicious and an automatic mis sale under the terms of the FCA redress scheme. We are however excluded from the scheme as we are ” sophisticated ” investors. We were in fact two men running a chain of pubs . The absurd ” sophistication” criteria of employing more than 50 people and turnover of over £6.5m or assets in excess of £3.2m. I left school in 1977 with 4 O levels one of those being a maths O level which I scrapped more by luck than anything else. The only thing this does is prevent a just payout by the bank to us and other victims of sharp practise .
We are not sophisticated!
Following the death of my co director his wife has been left with a mortgage she cannot possibly pay off despite his life insurance pay out, a mortgage they would not have had, the assets and income from the company would have provided them and indeed me and my family with a comfortable retirement. Scant reward for years of long hard work.! This has had a major life changing event on both our families. In my partners case literally and I blame the stress he suffered as a result of the loss of the business.
I have been struggling to find a decent position elsewhere ever since. Have been unable to pay my mortgage or support my daughters as I should have been able to, and have had to rely on the help of my aging in laws to survive!
With a new PM in and Chancellor in place I hope that you will agree that given your appointment it is right to re visit and review these disgraceful and truly unjust exclusions under the grounds of ” sophistication! We should not be trodden into the dirt by the banks to try to minimise what should surely be deserved compensation by these appalling bullies. SME’s are supposedly the life blood of the nation. Not to be abused and ruined by the acts of greedy banks in their insatiable appetite for profit at any cost.
Justice should be seen to be served!
Mike Lloyd ex Director Sarumdale Ltd