Interest rate swap redress offers double
Figures from the Financial Conduct Authority (FCA) show there has been an almost twofold increase in the amount of redress paid to those missold interest rate swap and hedging products in January 2014.
According to monthly updated figures by the regulatory body, there was £306.3m paid out to businesses missold Interest Rate Hedging Products (IRPHs) in January, up from £158.6m in December.
Banks set aside £3.75bn for the redress scheme, which started in May last year after the then Financial Services Authority (FSA) found that 90% of IRHPs could have been missold. More than 30,000 cases were reviewed by the FCA to assess whether they may be eligible for compensation by banks such as HSBC, Lloyds, RBS and Barclays.
Data also showed that out of the 9,000 accepted into the scheme, 2,092 have accepted their offers of redress.
The review has been completed as of January, and the most recent figures show that 81% of businesses contacted by banks have opted in to the scheme.
Daniel Hall from interest rate swap specialists All Square Treasury warned...