Small businesses mis-sold interest rate hedging products by high street banks have so far accepted £500,000 in compensation but the figure is likely to rise significantly, the Financial Conduct Authority (FCA) has said.
The redress scheme - set up last summer - could end up paying out £2.5bn. In an update on the progress of its review of sales of such products, the regulator said ten offers of redress have been accepted by businesses, totalling half a million pounds. The FCA expects this figure to increase rapidly over the coming months – 210 offers have already been sent to customers with a further 1,700 offers due to go out shortly. It added banks involved had taken on 2,800 staff to review more than 30,000 cases. So far more than five million documents have been reviewed. More than 25,000 ...
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