Britain’s big four high street banks mis-sold over 90% of interest rate swap products, a Financial Services Authority (FSA) report has revealed.
The FSA looked at 173 sales to non-sophisticated customers. The watchdog said that a significant proportion of these 173 cases were likely to result in redress being due to the customer.
Following the FSA’s finding Barclays, HSBC, Lloyds and RBS will start the full review of their sales of interest rate hedging products to small businesses.
The banks have agreed to work on reviewing individual sales and providing redress to customers based on principles outlined in the FSA report, and overseen by independent reviewers.