More banks dragged in and compensating for misselling
The FSA have said that a further seven banks have agreed to compensate customers over the misleading of interest rate hedging products.
The Allied Irish Bank, Bank of Ireland, Clydesdale and Yorkshire banks, the Co-operative Bank, Northern Bank and Santander UK are all agreeing to get their houses in order on the back of slaps in the face for Barclays, HSBC, Lloyds and RBS who forked out cash following an investigation into misselling of products.
According to the financial regulator, the seven banks joining the redress agreement will “participate in the review of their sales of these products and the redress exercise, on the same basis as those larger banks.”
“The FSA has not examined their sales of interest rate hedging products and so has not made any finding of mis-selling, but in agreeing to join the review, they are ensuring customers that bought these products will be treated consistently, irrespective of who they bank with. This will be important to get the best outcome,” the statement said.
Clive Adamson, director of supervision in the FSA’s conduct business unit, said: “This is a major exercise but one that we hope will ensure even more businesses benefit from having their individual situation reviewed. The terms of reference that we have agreed for the independent reviewers shows the detailed and thorough scrutiny that we will expect of them.”