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Court of Appeal rules that bank does not owe contractual duty to customer relating to IRHPs review

The Court of Appeal has recently published its judgment in Elite Property Holdings Ltd and another v Barclays Bank plc [2018] EWCA Civ 1688 (17 July 2018).  This case is of interest as it is the first time the Court of Appeal has considered whether a bank owes a contractual duty to its customers relating to its conduct of the IRHPs review.
Flaux LJ reached the conclusion that no contractual relationship arose between a bank and its customer when the customer accepted an offer of redress following the bank’s review of its sale of interest rate hedging products. The bank had undertaken the review pursuant to its obligation to the Financial Conduct Authority and did not come under any contractual obligation to its customers in relation to its conduct of the review when it made an offer of redress in relation to the misselling of structured interest rate collars.
Gordon Deane at Balfour+Manson has been advising a number of the firm’s clients regarding bank related claims. If you would like to discuss any such matter with Gordon, please contact him on 0131 200 1485 or at gordon.deane@balfour-manson.co.uk