A year after regulators ruled that banks were guilty of widespread mis-selling of £2 bn of interest rate ‘swaps', thousands of the small and medium-sized businesses affected are still waiting to receive compensation.
Swaps are insurance policies designed to protect against changes to interest rates and were sold by banks to firms taking out loans. In June of last year the Financial Services Authority found that more than 90% of firms taking part in a review had been mis-sold such policies. Some were left with huge bills as a result of schemes which forced them to pay more when interest rates fell, the Mail on Sunday reports. This January, the FSA announced a compensation scheme through which the 40,000 firms affected should receive ‘immediate' compensation. But it is understood only a small number...
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