Banks are slowly but surely compensating small firms that have been mis-sold interest rate swap products. Firms have been waiting six months to get compensated. The Financial Conduct Authority, which is also known as the FCA, has stated that the progress has been much slower than they had anticipated. In September, only 22 got redress. There have been over 30,000 cases reviewed.
Interest Rate Swap Compensation Total : 22 out of 30,000
So far, there have been 22 offers accepted. The banks have given two million pounds in compensation. It is estimated that three million pounds in compensation have been built up by the banks.
Abhishek Sachdev is the managing director for Vedanta Hedging. He has stated that the fact that only 22 offers have been accepted shows that the banks have been very slow in compensating people.
John Allan is the national chairman for the Federation of Small Businesses. He has stated because the compensation has been incredibly slow, people are beginning to lose confidence in the banks. The regulator stated that it was supposed to take the banks six months to issue compensation to the firms. This deadline has been missed by a wide margin.
The good news is that people are expecting a drastic increase in the number of offers accepted over the next couple of months. The banks are expected to send 1,000 compensation offers by the end of October 2013.
Martin Wheatley is the chief executive for the FCA. He has stated that even though they are moving in the right direction, he is expected to see more cases resolved and redress paid over the next couple of weeks. Wheatley has also stated that many businesses have been waiting too long to find out whether they had been missold. Banks are eager to get people compensated as soon as possible.
An interest rate swap is a complicated derivative. It might have been sold as a protection, which means that it acts as a barrier against an increase in interest rates. Many customers do not fully grasp all of the risks of this.
The interest rate swaps were marketed as inexpensive cost protection against increasing interest rates. They were often a business loan condition.
The banks have been heavily criticized because they have been slow in compensating people. Many people do not realize all of the hard work that goes into compensating a bank. There are currently 2,8800 bankers working on getting firms compensated. Additionally, people do not understand how easy it is to make a mistake when banking.
Hopefully, the small firms that were mis-sold will be able to get compensated soon. The banks have set a new deadline, and they are doing all that they can to ensure that they meet this deadline.
Interest Rate SWAP News
Interest Rate Swaps : FCA Fair & Reasonable Redress
The regulatory failings of bank interest rate swaps have left thousands upon thousands of disgruntled customers looking for redress. Fair and reasonable redress, including consequential losses, by the banks and the FCA helps put customers in the same position they would have been in if the regulatory failings had not occurred.
The exact definition of fair and reasonable redress is malleable as it varies from case to case. In each case, the testimony of the customer and the evidence is reviewed by an independent reviewer to determine the appropriate redress. Therefore, when discussing fair and reasonable redress, it is important to have an understanding of basic redress and consequential losses.
FCA Interest Rate Swap Flowchart
Derivatives may be one of the most complicated financial investments on the market. The Financial Conduct Authority (FCA) has created a chart to help consumers, barristers and bureaucrats understand whether a potentially mis-sold Interest Rate swap Hedging Product (IRHP) can be reviewed.
The Financial Conduct Authority (FCA) Interest Rate Flow Chart uses a flow diagram with “Yes/No” questions to show whether a debtor qualifies for regulatory review.
Small Business Loan Protection Claims & IRSAs
There are still an untold number of individuals who appear to be unaware they may be eligible to make PPI compensation claims. But were you aware that the Financial Services Authority (FSA) recently confirmed there could be an equal number of small businesses eligible for compensation from major banks? This has been yet another huge blow for the banking industry, which is still reeling from regulations that could require repayment to the hundreds of thousands that were sold unnecessary insurance for a myriad of reasons.
Tim Capper reports on Financial Mis-Selling for Maple Leaf Financial. Our aim is to ensure you get honest advice and proper guidance to ensure a suitable recommendation can be made to pursue a financial claim
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