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 reports that the bank paid about £10m in damages out of court to the firm; however, it has admitted no liability. A spokesman for RBS's UK retail banking division said: "We are pleased to have reached a resolution and we will be working closely together with Westgate Healthcare on this matter.