Partly Cloudy

Partly Cloudy

max temp: 11°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

The headquarters of Realise Futures in Ipswich.

Ipswich-based social enterprise Realise Futures has won a contract to provide supported employment services for adults with disabilities across a wide area of Essex.

Stage 5 of the Womens Tour passes through Onehouse on their way to Bury St Edmunds last year

Schoolchildren will also be involved in an evening of activities in Bury St Edmunds ahead of the start of a major women’s cycling event.

Paul Rous, of Bruisyard Hall, has launched a tech startup venture with Mark Pearson

A Suffolk entrepreneur has teamed up with a top technology investor, who made millions from a website he created with just £300, to help finance new ideas.

Cloud telecoms company X-on has launched Cuube, a new online communications services platform.

Cloud telecoms company X-on, based at the Framlingham Technology Centre, has launched Cuube, a new online communications services platform.

Jeremy Goulding, front, left, chief executive of Wheatley, is congratulated by Innovatioin Martlesham chair Ian Buxton on winning the first Innovationi Martlesham competition. Also pictured, from left, are Paul O'Brien of BT, Jane Bromley of Wheatley, Mike Ward of Wheatley and Mohamed Abdel-Maguid from University Campus Suffolk.

Software company Wheatley has been named winner of a new competition staged by Innovation Martlesham, the cluster of hi-tech companies based at BT’s Adastral Park research site, near Ipswich.

Total unemployment in the UK has reached a near seven year low, official figures showed today.
Photo: Philip Toscano/PA Wire

Unemployment in the UK has continued to fall and a record 31million people are in now work, according to the final labour market figures before the General Election.

The Nestle Purina plant in Sudbury.

KitKat, Nescafe and Shredded Wheat maker Nestlé said today that first quarter sales had been boosted by an earlier Easter, but with growth dented by currency changes after the Swiss central bank’s shock decision to lift a cap on the franc.

The B&Q store on the North Quay Retail Park in Lowestoft which is closing in January 2016. Picture: James Bass

DIY chain B&Q has announced its Lowestoft store will close at the start of next year, with reportedly 40 jobs being lost.

Suffolk cider and vinegar maker Aspall was named Business of the Year at last year's EADT Business Awards.  From left, Tom McGarry of EDF Energy, Barry Chevallier Guild of Aspall and Sarah Howard,  of SuffolkChamber.  	
Picture: Lucy Taylor

There is now less than a week to go to enter the 2015 East Anglian Daily Times Business Awards.

Most read

Most commented

Topic pages