A care homes provider has settled a three-year legal battle with Royal Bank of Scotland over the alleged mis-selling of an interest rate swap. Westgate Healthcare, which owns eight homes, was charged huge fees after RBS attached rate-hedging products to loans taken out for expansion. In 2008 the bank added 20-year swaps to loans totalling £18m. By August 2014, the company had paid swap fees of about £6.5m to RBS and was locked in until 2028. Westgate sued RBS, claiming damages of more than £30m. The bank recently settled out of court. It is understood to have paid about £10m to settle the claim but admitted no liability. One expert said RBS was facing more than 40 legal cases concerning swap mis-selling. The bank declined to comment. “It has been a long and expensive fight to put things right, as RBS . . . has never admitted any fault,” said Richard Langley of To read the full news article please click here Disclaimer: Statements in this article should not be considered investment advice, which is best sought directly from a qualified professional.
The Royal Bank of Scotland ( RBS ) has settled with care home provider , Westgate Healthcare , over allegations of mis - selling of an interest rate swap . It is understood from evidence that the bank paid about £ 10 m in damages out of respect to the firm ; however , it has claimed no liability . One bank has suggested that it is facing over 40 legal cases over swap mis - selling ; the firm has declined to comment .