Banks too slow on mis-sellings payouts
British banks have been sloth-like in their response to paying people what they're owed after being mis-sold products. A fraction of the £3 billion has gone out, drawing criticism from businesses and the financial watchdog.
"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," said the Financial Conduct Authority.
The review of interest rate swap mis-selling, set up by the FCA, initially said that firms would be compensated within 6 to 12 months, however, the process is now slower than the Eurovision vote.
The lack of progress is angering small businesses, who are still looking at crippling monthly repayments and more, in a bid to get themselves out of these arrangements. "The fact that only 22 SMEs accepted offers last month shows the unacceptably slow performance of the banks providing satisfactory redress to those mis-sold," said Abhishek Sachdev, managing director of Vedanta Hedging, which advises companies on the products. "We are aware of some SMEs that have been waiting for 12 months since their review meeting with the bank."
The FCA expects things to ramp up and soon, saying that the banks are aiming to send out more than 1,000 offers of compensation in October, with that number increasing month on month.