Regulation  

Interest rate hedging redress hits £800m in April

Banks increased their total payout relating to mis-sold interest rate hedging products to almost £800m in April, the Financial Conduct Authority has revealed.

The figures, published today (8 May) revealed in April 5,732 customers accepted their mis-selling payout.

Currently 14,400 customers are in the redress phase of which around 80 per cent have received a redress determination.

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The FCA said Bank of Ireland and the Co-operative have now completed their case reviews, while other banks remain “on track” to provide a redress determination to all customers within 12 months of starting their reviews.

These banks are currently sending out more than 500 redress letters per week, and the customers who are still waiting should receive a letter in the next two to six weeks, the regulator said.

The FCA added the Royal Bank of Scotland’s rate of completion is “marginally behind” their projected proposition but the bank has now completed all reviews and has passed them on to the independent reviewer for approval.

The FCA said: “We meet regularly with RBS, currently more than once a week, to monitor its progress against forecasts and to ensure that the quality of customer outcomes is not being compromised.

“However, the banks’ ability to deliver against their projections also requires timely engagement from customers. We would like to encourage the 1,300 customers yet to opt-in to the review to do so as quickly as possible.

“Over the next few months the banks will continue sending out final reminders to customers to encourage as many as possible to participate, before the review is closed for new entrants.”