LONDON Jan 10 Britain's biggest banks have so
far paid out only 158.6 million pounds ($261.1 million) of the 3
billion pounds they have set aside to compensate small firms
mis-sold complex interest rate hedging products, the financial
The Financial Conduct Authority said on Friday that the pace
of banks reviewing cases of mis-selling was continuing to
increase. A total of 1,040 offers of compensation had been
accepted by customers at the end of December, up from 547 at the
end of November. The amount of compensation paid had risen from
81.2 million pounds at the end of November.
The products were designed to protect smaller companies
against rising interest rates but when rates fell, they had to
pay large bills, typically running to tens of thousands of
pounds. Companies also faced penalties to get out of the deals,
which many said they had not been told about.