Two Fylde businessmen, who claim they have been mis-sold a loan, are taking their case to the court of appeal after being left with eye-watering six figure costs.
Paul Rowley and John Green began their appeal against RBS yesterday in what their solicitor has described as “a watershed case”.
If successful, the case could have significant implications for businesses in the North West.
The business partners claim RBS mis-sold them an interest rate swap in 2005, by failing to inform them of the additional costs attached to the swap.
Mr Rowley runs the Lindum Hotel, on South Promenade, St Annes, while Mr Green is the founder of Lytham Estate Agents.
The pair secured finance for a property business they set up together from RBS and as part of this were advised to buy an interest rate swap product.
However, they claim they were not informed of the risks or potential costs of doing so.
The costs have totalled £400,000 against a £990,000 loan, which was first taken out with the bank in 2012.
Jon Green, the appellants’ solicitor, said: “Messrs Rowley and Green were not provided with a comprehensible and fair disclosure of the potential break costs associated with their product.
“Indeed, it is difficult to imagine someone entering into an agreement such as this after being properly advised of the risks involved.
“This is potentially a watershed case for the thousands of businesses that have been impacted by interest rate swaps.”
RBS declined to comment on the case when contacted by The Gazette.