Partly Cloudy

Partly Cloudy

max temp: 15°C

min temp: 5°C

ESTD 1874 Search

Banking: Compensation payouts over rate-swap mis-selling nearly double in a month

11:49 10 January 2014

The rate of compensation payouts over rate-swap mis-selling increased markedly in December, new figures have revealed.

The rate of compensation payouts over rate-swap mis-selling increased markedly in December, new figures have revealed.

Banks have increased the pace of granting compensation to small businesses over allegations that they were mis-sold complex financial products, with pay-outs reaching £158.6million in December.

shares

It means the total nearly doubled in just a month, after standing at £81.2m at the end of November, according to figures from the Financial Conduct Authority (FCA).

However the figure represents just a small proportion of the £3billion set aside by major lenders so far to cover the costs of making redress to victims, although that figure will also include the expense of administering the scheme.

The FCA has previously written to the chief executives of Royal Bank of Scotland, HSBC, Barclays and Lloyds urging them to increase the pace of compensation for the interest rate swap products.

Martin Wheatley, head of the City regulator, has said the delays compound the unfairness of selling a complex product to companies without an understanding of the risks, leaving many struggling to make ends meet.

But the FCA adopted a more positive tone when it issued its monthly update on the scheme today.

It said a total of 1,040 offers of compensation had been accepted by customers by the end of December, up from 547 in November.

Director of supervision Clive Adamson said: “Banks have picked up the pace since November; we asked that they focus their efforts on making far more rapid progress in assessing individual cases and crucially in providing redress.

“May remains the target for all offers to have been sent out and the banks involved are working towards that. Any affected business that has been invited to join the scheme and hasn’t needs to act now so they can receive the redress they’re due.”

A total of 18,700 customers had been invited to join the review by the end of December.

Anthony Browne, chief executive of the British Bankers’ Association, said: “Anyone who wrongly suffered as a result of having been mis-sold an interest rate hedging product will get appropriate and fair redress.

“Banks are working hard to complete the reviews and as the regulator notes today the process is speeding up.”

shares

0 comments

Arlingtons new art exhibition, Liz and Ken Ambler at the launch

Music, art, wine and a great deal more

Steven and Debbie Morgan pictured when they took over The Royal Oak earlier this year

Firefighters were called to a pub last night following a water leak which caused flooding.

Abby Curtis who is opening Pump and Grind coffee shop in Great Colman Street with Tom Kerridge

The business team behind a new cafe have said they are disappointed they will not able to serve alcohol when opening for the first time on Saturday.

Bury Council Building Angel Hill.

The new chairman of Bury Town Council has said he intends to make the authority relevant after claiming it has done “almost nothing” for the last few years.

Rachel Pearlman, Zoe Bradbury, Jack Northcott and Jordan Keeble of Ginger Nut Media team  at the OXO Tower in London, after being awarded as the best level of support during Advanced Apprenticeships.

A digital advertising firm is celebrating after scooping an award for its supportive training regime.

Royal Mail has seen a rise in annual profits.

Royal Mail today reported a rise in underlying annual profits as a squeeze on costs helped offset a lower than expected performance from its parcel business.

Tesco  Group Chief Executive Dave Lewis

Tesco paid £4.1 million to new boss Dave Lewis in his first six months after he was brought in from consumer goods group Unilever to turn around the embattled supermarket.

A branch of cash and carry chain Booker

The country’s largest cash and carry chain is to buy Londis and Budgens in a £40million deal to boost its scale amid the ongoing supermarket price war.

Colchester High Street

An alliance of businesses in central Colchester have voiced opposition to out-of-town development proposals they say could deal a “fatal” blow to the town centre.

Niall Dyer, managing director of Plinth 2000, which is flying the flag from Britain in export markets.

Suffolk treatment couch manufactuer Plinth 2000 has delivered its largest-ever export order.

Most read

Most commented

Topic pages