Barclays and LIBOR

[MRSO63]

Hi, I'm new and maybe in the wrong place but I'm sure someone will help me there.

We started a business with a loan from Barclays. The business plan showed a period of 3-4 years to go into profit. It involved converting a country house into self catering holiday accomodation. During the six months it took to sell and purchase properties the interest rate doubled. We were on target time wise and were due to open in the summer, as in the plan. Obviously we were struggling with repayments and had extended the overdraft. On the Friday of a bank holiday weekend we received a letter out of the blue informing us that,words to the effect, 'in our best interests', they had frozen our account. We were still building, so couldn't open and if we sold, we would have lost thousands - and we had four children and nowhere to go.

The interest rate being charged was around 20%. The year was 1987.

Now I know this is probably too long ago (not long enough as I am sweating thinking about it again) - but

Appropos LIBOR fixing I am sure I heard that it has been going on for ages and had influenced those excessive interest rates in the 80's. My question is, if it did and if B did, would the likes of me be entitled to a piece of compensation that sufferers from the last decade will no doubt be getting?

Our business never recovered and although we ran it for fourteen years it was always at a loss and had to be subsidised by salaried employment.

[slick132]

Hi MRSO63 and welcome to CAG

 

If the business was still running, or had been running during at least some of the last 6 years, you'd probably have a better chance of seeking justice and compensation.

 

But, as all this relates to 10 to 20 years back, I fear you'd struggle now to make a decent case against the bank.

 

Maybe others will think differently ....................

 

[MRSO63]

Thanks. Thought might be the case.

[san_d]

Thanks. Thought might be the case.

 

I wouldn't give up on this. Libor manipulation is essentially fraud and had been going on for long time. I wouldn't be able to recommend you which legal path to undertake, but I am sure more will come out soon and a new host of lawyers will specialize on Libor fraud repayments. Expect to see adverts of legal firms on most popular tv channels, same as they did for the PPI cases.

 

The only problem is that the FSA and its predecessor did all they could to hide the extant of the scandal and most of the evidence has been washed away.

[MRSO63]

Thanks for the encouragement.