Focus On: Banking and Financial Services Disputes
22 March 2021
MKB Law have developed a reputation as one of Northern Ireland’s market leaders in representing business and individuals in banking and financial services disputes. In recent years, we have succeeded in obtaining compensation and resolutions for clients in the following scenarios:
Breaches of contract arising from the implementation of facility agreements;
Breaches of contract arising from the incorrect application of break costs following refinancing;
Restraining the transfer of the benefit of customer banking facilities to third parties;
Recovering monies following “phishing” and “vishing” scams.
Mis-sold derivative products;
Negligent advice (“mis-selling”) following re-investment of pension monies;
Defending the enforcement of personal guarantees.
MKB Law achieved significant compensation for a small/medium-sized enterprise.
The SME had been offered a high value loan (“facility”) by the lender. The facility was offered and accepted on the basis that capital repayments would be repaid in accordance with a capital repayment schedule. Interest was to be paid on the outstanding capital balance of the facility at a fixed rate per annum.
In breach of the terms of the facility, however, capital repayments which our client sought to make in accordance with the terms were prevented and our client was informed that the facility had been set up on an “interest only” basis. The upshot of this was that interest charged to our client was calculated on the basis of the full capital sum initially drawn down instead of a sum which incrementally decreased over time in line with our client’s scheduled repayments. Our client not only suffered direct loss as result of this breach of contract but also consequential losses as a result of having reduced capital available for other business opportunities.
Following the issue of High Court proceedings and negotiations, MKB Law achieved a significant outcome for our client.
MKB Law have significant experience in resolving disputes for SMEs in similar scenarios to the one above. If you have been affected by any of these issues or require assistance please contact us to discuss.