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FSB urges action from banks on mis-sold interest rate swaps

Last updated on 01-Feb-2013 at 09:37 GMT2013-02-01T09:37:15Z

The Federation of Small Businesses (FSB) is calling for “swift” action from banks to compensate businesses caught up in the mis-selling of interest rate swaps.

It comes after the Financial Services Authority reported that 90% of the complex products were mis-sold.

The FSB is concerned that all payments haven’t been automatically suspended and that there is still not a clear route for businesses to appeal a decision.

John Walker, national chairman at FSB, said: “The FSA’s report into mis-selling highlights the seriousness of the situation finding that 90% of loans were mis-sold. This is alarming, but will come as a relief to the thousands of small firms who have been anxiously waiting for an outcome on this very complex situation. We welcome the work that the FSA has done to date and that it has listened to our concerns around how it defines a sophisticated business. 

“However with the pilot showing such a significant level of mis-selling we are concerned that the FSA has not mandated that all payments are suspended when a firm enters into the scheme – we would like the banks to do this for their customers. There is also a lack of clarity on what full redress looks like, with banks determining what constitutes consequential losses, and how an appeals process will work.”

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