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Commercial Finance

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Commercial Finance

Interest Rate Hedging Products (IRHPs) were created to help Small and Medium Sized Businesses (SME’s) to manage interest rate risks. With SME’s encouraged to be the driving force out of recession in the UK, the damage IRHPs can do affects not only the businesses involved, but the economy too. . .

The idea of an IRHP is as a mechanism to protect against interest rate rises and keep loan repayments at a manageable level. There are four types to choose from that will have been advised by a lender or broker:

1. Swaps – Enabled a customer to fix the interest rate.

2. Caps – limited interest rises.

3. Collars – enabled you to limit interest rates fluctuations between a simple range.

4. Structured Collars – A more complex arrangement with a lower 'ceiling' but a higher interest rate may be payable if interest falls below the lower rate.

When IRHPs were originally introduced and heavily marketed, the UK was in the middle of a recession. Interest rates were at 5.5% and certain to rise. The rate instead fell during this period to an unprecedented low of 0.5%, and has remained at this emergency level ever since. This of course has led to serious financial difficulties for those involved, as the expected benefits of the scheme were never applicable.

SME’s who were involved are now left with a choice between exceptionally high monthly payments and an extortionate cancellation fee. Since mis-selling has been investigated it has been found that lenders:

1. Wrongly made taking the IRHP a condition of being granted a loan.

2. The length and level of the IRHP exceeded the original loan.

3. 50% cancellation fees were asked for.

4. Banks explained the benefits but not the risks of the scheme to customers.

Thanks to investigation by the Financial Services Authority (FSA) banks are now being forced to review their IRHPs, to see whether they were mis-sold. If so, then banks must now redress customers who were mis-sold and look into the sales process behind each transaction. Claims can be pursued by management companies such as Enjay Claims.

We are happy to answer any questions you may have without obligation. If you want to know more, or think you have been mis-sold, call us today on 01708 854200


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You could take up the claim yourself directly with the finance company, and ultimately the Financial Ombudsman Service to a maximum of £150,000 or use one of the many other claims management firms out there. Although we can’t guarantee to win your claim you will know that by appointing us you will be using an experienced claims firm that will be working hard for you to get you the compensation you may be entitled to.

If your commercial finance has been mis-sold then we can generally claim for the return of any the costs involved including payments, interest accrued and an additional 8%. Once the initial claim has been successful we would then look at a consequential loss claim due to the effect of the mis-selling.
However, you will only be able to claim with us in the following circumstances:
1. You only became aware within the last 3 years that you might be a victim of mis-selling;
2. You did not cancel the loan within 30 days of taking it out and receive a full refund;
3. You haven’t already tried to reclaim for mis-selling
4. No-one else is dealing with your claim for you.

Please note if you don’t have any paperwork we may only be able to help if your loan was sold within the last 6 years as records of your policy may not be available.

Just take a look at our Terms of Business and if you’re happy with everything all you need to do is complete our simple Claim Application and return it to us with your signed Letter of Authority. If you have any documents relating to your claim, for example, a loan agreement, then it would be helpful if you can let us have copies. We we’ll then write to the provider of your loan and submit your claim.

Firms are required to resolve complaints within 8 weeks so we will be pressing to get your case dealt with within this period. However, due the complexity of these complaints the usual timescale is around 2-6 months. We may also have to refer your case to the Financial Ombudsman Service or if the firm is no longer trading then it will be referred to the Financial Services Compensation Scheme. Either of these routes may mean that your claim will take longer. Please note claims that proceed to the Financial Ombudsman Service can take up to 2 years.

If you are in a CVA or are declared bankrupt, you may need to consult your insolvency practitioner before you make a claim. Also, be aware that your compensation payment will likely be used to clear your debts so you may not actually see a penny of your compensation however you will reduce your outstanding debt sooner.

You may cancel your contract with Enjay Claims within 14 days of signing the Letter of Authority and you will have nothing to pay. If you wish to cancel please contact us using one of the contact methods below.

You can also complete our Cancellation Form and post or email it to us:

Cancellation Form

We charge an initial review fee of £2400+ VAT non-refundable, If we are successful then you will pay us 20% of the total gross redress plus + VAT.
When we submit your claim to the finance company, we may need to ask them to provide copies of any application forms, telephone recordings and e-mails.

*fee may be payable if claim withdrawn at client’s request.

Redress can be paid in a variety of ways. However your redress is paid, our fee is based on the gross amount of redress that is applied, which includes cash payments and amounts offset against your loan or amounts used to restructure your loan.

Firstly, you may receive a cheque back for the amount of redress or it may be paid directly to your bank account. This is usually the way if your loan has been repaid in full. If your total redress was £1,000 then you would pay our fee 20% + VAT which is £240 you would receive £760 back.

– £240.00
= £760

If the loan is still in place with an outstanding balance then the lender may “restructure” your loan. This means that the lender will recalculate the outstanding balance. In this case, you may receive some redress as a cash payment and the remainder of the redress is “paid” against your loan.

Total Redress=
-£300.00 ( Balance outstanding on loan)
-£240.00 ( Fee 20%+Vat of gross redress)

If you have arrears on your loan account then the lender can use the redress to pay the arrears off before making payment to you. If you have been issued with a “default notice” and your account has been terminated then the lender can use the redress to pay towards your outstanding balance which may mean that you do not receive any of your redress but you will still need to pay our fee. This is why it is important to tell us about any arrears you have in relation to the credit or loan accounts as it may not always be in your best interests to use a claims management company to pursue a claim on your behalf.

If all other avenues have been explored we may need to consider legal action. If legal action is required we have a number of legal advisors on our panel whom we can recommend, they may also be able to apply for third party funding if you do not have the funds to pursue legal action due to costs. You are under no obligation to use these facilities and can appoint your own legal representative if you wish to do so, we are more than happy to advise as required.

Yes, we will communicate with you via email, phone call or postal mail. We will keep you updated with your case at all relevant stages. If at any time you would like an update on your case, please contact us via the options below.

We make every effort to provide a professional and effective service at all times. However, in the event of a complaint, please contact us using the details below. If you are not satisfied with our response or we haven’t completed our
investigation within 8 weeks of acknowledging your complaint then you may refer the complaint to the Legal Ombudsman, whose contact details are: Legal Ombudsman, PO Box 6804, Wolverhampton, WV1 9WG. www.legalombudsman.org.uk/cmc
Email: cmc@legalombudsman.org.uk Call: 0300 555 0333

Enjay Claims Hall Farm Nursery Church Lane Upminster Essex RM14 3QH.

Please also refer to our Complaints Procedure:

Enjay Claims Complaints Procedure