(Photo: IBTimes UK)
(Photo: IBTimes UK)

Businesses seeking redress after being mis-sold interest rate derivatives are starting to get compensation offers from banks.

But while some small-to-medium enterprises' cases are progressing, through either litigation or the former Financial Services Authority's review, the murky world of administration lurks beneath the scandal.

In this video special investigation, IBTimes UK speaks to businesses and experts about being in limbo after being tipped over the edge into insolvency.

For the full report, check out IBTimes TV or the video on the top right-hand side of this page.

IBTimes UK spoke to the companies cited in the video and they gave us the following statements:

Lloyds Banking Group spokesperson on Jon Welsby's case: "We are aware of the allegations raised, which are part of a customer complaint that the bank is actively looking into. As these are still being investigated, it would be inappropriate to comment until that process concludes."

Lloyds Banking Group spokesperson on the interest rate swap review process in general: "We are committed to doing the right thing by our customers, which means [that] following the review we will provide redress as quickly as possible to those small business customers where detriment is identified."

IBTimes UK detailed the contents of the video to Savills but the group declined to comment.

Barclays spokesperson on Mike Lloyd's case: "Barclays worked closely with the Sarumdale management team for a number of years to try to turn around the business. Unfortunately, the HMRC winding-up petition in 2012 meant that the strategy could not be completed.

"Sarumdale entered into a number of hedging contracts over many years. The company never expressed its dissatisfaction with the interest rate products it had taken out prior to the administration. We are in ongoing discussions with administrators to find the best solution to get the maximum value for all creditors. Where we have not met the expected standards, we will put things right."

Barclays spokesperson on the interest rate swap review process in general: "We are pleased to have reached an agreement with the FCA on how to progress our review of the sale of interest rate swap products. We have commenced the main review and look forward to engaging with all eligible customers. Where we have not met the expected standards, we will put things right."

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