The LIBOR Scandal – How will it affect me?
31st July 2012

Recently in the news there’s been a lot of talk about the LIBOR scandal – but what is this scandal? How will it affect the public? Am I losing out?

LIBOR stands for London Interbank Offered Rate; this is the rate which banks make short-term loans between themselves. It is calculated on a daily basis and is done by 18 different bank’s rates. It’s done in a similar way to how diving’s scored, they collect the rates from each bank then they remove the highest and lowest rates leaving them with an average. However, instead of the prize being a lovely gold medal, it’s an extremely large amount of money which should belong to the customers.

This scandal has a vast impact on the public, having the average interest rate manipulated is what makes consumers pay more on their variable-rate mortgages, credit cards, student loans and it also affects new homeowners and small businesses. If you think about it, that’s an incredibly large number of people who have been mislead by what the banks have been doing for a number of years.

Barclays paid a fine of £290 million that was imposed by regulators and they also decided that four of their senior executives were to give up their bonuses. Even after what ex-Barclays Boss Bob Diamond has knowingly done, he is still getting a £2 million pound payout, however, he has kindly and voluntarily, forfeited his bonuses worth up to £20 million.

It’s not just Barclays Bank who looks to be in the doghouse. Labour leader Ed Miliband has called for a criminal investigation to be conducted as Lloyds, HSBC and Royal Bank of Scotland have also admitted being investigated over their alleged involvement. Shares in these 3 banks have fallen due to the investigations and shares in Barclays Bank have fallen by as much as 17 per cent.

I know what you’re thinking, it’s completely unfair. How could they do this and get away with it?!

We, at PLS Solicitors believe that they shouldn’t. As with the Payment Protection Insurance scandal, this has left customers deliberating whether they could make a claim.  PLS Solicitors are calling for all those who think they may have a claim to come forward as we believe that we may be able to help.

If you think you have a claim, please don’t hesitate to contact our very own Adam Pavey on 0161 941 7449. He will be able to help and advise you and to answer any questions that you have.

PLS Solicitors is a Solicitors firm based in Hale, Altrincham near Manchester. We deal with Residential Conveyancing, Commercial Conveyancing, Disputes and Employment Law. Take a look at our website at www.pls-solicitors.co.uk for full details of how we can help you.

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