These products (often referred to as IRHP’s) are usually offered when credit is given or loans taken out and are intended to “protect” the borrower against some unforeseen movement in the interest rate. The borrower could be a company or other business, big or small or an individual.
In brief the intended effect of these is as follows:
SWAPS are meant to have the effect of fixing the interest rate;
CAPS are meant to stop the interest rate going above an agreed level but allow it to fall if the base rate falls; and
COLLARS are meant to do the same as CAPS but only allow the interest rate to fall to an agreed lower level.
I say “meant to…” because they are often more complex products than the borrower ever realised and for this reason many may have been missold.
If you have an Ombudsman’s decision in your favour but the Company or business has not paid or done what the Ombudsman said they should do. Where do you go from here?
Asking the Ombudsman for Help
The Ombudsman can threaten to report the business to the Financial Conduct Authority (formerly the Financial Services Authority) who licence such companies and could themselves threaten to withdraw the licence. This may have limited success.
How to Enforce an Ombudsman’s Decision in Court
Once the Ombudsman has made his decision there should be no further arguments over the facts and so the courts should be make an order stating that the Ombudsman’s award or decision and allow it to be enforced as a court order.
A decision that the business pays a sum of money can be enforced as a “money judgment.”
A decision that says the business must do something else could be enforced by an order for an injunction to force the institution to do what the Ombudsman has said it must do. Failure to follow an injunction can carry a custodial sentence!
If you need any help with the court process do not hesitate to contact us on 01925 759 510 or use the online contact form to the side of this page and we will do our best to recover your rightful award