Banks 'face new mis-selling scandal'

clock

Britain's leading banks are facing allegations of mis-selling complex interest rate protection products to hundreds of small businesses.

All of the UK's major banks, including Barclays and HSBC, are reportedly facing legal action which could lead to billions of pounds of damages for small and medium-sized businesses (SMEs), reports The Sunday Telegraph. The businesses claim the banks profited at their expense by encouraging them to take out highly-complex interest rate derivatives. Many of the claimants spoken to by The Sunday Telegraph said they were not aware of the significant costs attached to the products that were supposed to protect loans from upward movements in interest rates. When interest rates plunged af...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

PA Awards 2026: Entries for all categories now open!

PA Awards 2026: Entries for all categories now open!

Our 21st anniversary awards will be held in London next March

Professional Adviser
clock 09 July 2025 • 1 min read
Plannr integrates SmartSearch anti-money laundering checks into adviser workflows

Plannr integrates SmartSearch anti-money laundering checks into adviser workflows

System aims to streamline client onboarding

Sahar Nazir
clock 09 July 2025 • 1 min read
More than half of advisers have seen clients negatively affected by finfluencers

More than half of advisers have seen clients negatively affected by finfluencers

‘Advisers are becoming, in many cases, financial paramedics'

Isabel Baxter
clock 09 July 2025 • 2 min read