LONDON Feb 4 Britain's biggest banks have so
far paid out only 306.3 million pounds ($500.3 million) from
more than 3 billion pounds which they have set aside to
compensate small firms mis-sold complex interest rate hedging
products, the financial regulator said.
The Financial Conduct Authority said on Tuesday that the
pace of banks reviewing cases of mis-selling was continuing to
increase. A total of 2,092 offers of compensation had been
accepted by customers at the end of January, up from 1,040 at
the end of December.
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.