Regulation  

Bank redress for mis-sold swaps £1.5m in September

Banks paid out approximately £1.5m to 22 claimants who were mis-sold interest rate swaps in September, building on the half-million pounds reportedly paid out previously under the redress deal reached with the regulator.

The Financial Conduct Authority has revealed that in September 400 redress determinations were completed and 200 offer letters were sent to customers. However, only 22 offers were accepted over the course of the month.

According to the regulator, only 3,000 of the 29,000 ‘sophistication’ reviews have been completed and that 16,000 non-sophisticated customers have been invited to join the review. In September alone, 1,000 customers were invited to join and 2,500 opted to join.

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The FCA said in a statement that it expects the number of offers will increase rapidly over the next few months and that the banks are aiming to send out 1,000 offers in October, with the number being sent out each month increasing over time.

The FCA said: “Progress to this point has been slower than expected. Many customers have been waiting too long to find out if they were mis-sold, some for more than six months.

“We have told the banks that we expect most customers who have joined the review to have been informed of their compliance assessments and, if applicable, to have received an initial redress offer by the end of the year.”