Settlement relief for lorry park
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THE ORWELL CROSSING Lorry Park's owner said its future may have been secured following a six-figure settlement offer from its bank after it was apparently mis-sold a financial product.
Karl Rout said Natwest had made an initial offer for the interest rate hedging product (IRHP) it was provided with after it took out a loan with the bank. It was designed to protect businesses from sudden rises in interest rates, but thousands of firms have argued that they were not informed they would be out of
pocket if the rate dropped.
"When the interest rate dropped to 0.5%, our rate went up to 9%," said Rout. "We have to work out the consequential losses as well now."
He added: "It [the settlement offer] gives us more security for the business, we will be able to pay certain bills, HMRC; things like that. There's not so much pressure."
Rout had previously told CM that his Suffolk lorry park might have to close after demand for secure LGV spaces plunged.
Natwest is part of the Royal Bank of Scotland Group (RBS). In a statement last month RBS said it had written to 6,376 customers about IRHPs, but had so far only made three payments.
It said: "If you have not yet heard from us, please be assured we are committed to communicating with all affected customers by the end of 2013."
• A House of Commons debate took place last month on the lack of progress by banks and the Financial Conduct Authority on a redress scheme.