The programme focused on the bank ‘swap’ scandal, the swap was supposed to give borrowers security against high interest rates, however the opposite has happened and businesses are unable to keep up with the extortionate payments due to unusually low interest rates.
The Panorama special showed an interview with a couple whose business and personal lives had been badly affected by the swap. The Whelan’s were visibly upset when asked about their business and the struggles they had faced since their payments to Barclays had massively increased. The BBC stated that ‘After Panorama contacted Barclays about their case; the bank said it had suspended Kites Nursery's interest rate swap payments and if they made mistakes, they will put them right.’
Adam Shaw tweeted ahead of the show saying “head of City Regulator FCA tells tonight’s Panorama that will look at possibility of fining banks for swap mis-selling.” However the FCA set up a redress scheme to review nearly 30,000 cases involving some of the UK’s biggest banks, so far only 32 companies have received payouts.
The BBC and Adam will hope that the Panorama show has highlighted this major fault in the system and push banks to help the businesses that are failing due to the ‘swap’ scandal.
Copyright Speakers Corner 2016