Banks 'face new mis-selling scandal'

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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...

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