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UK big 4 banks agree to redress on rate protection

UK big 4 banks agree to redress on rate protection

June 29th, 2012 in News

LONDON (AP) - Britain's financial regulator says the country's four biggest banks have agreed to a settlement for mis-selling interest-rate protection products to small and medium-sized businesses.

The Financial Services Authority said Friday that Barclays, HSBC, Lloyds Banking Group and Royal Bank of Scotland have all agreed to provide redress to victims of mis-selling.

The FSA says that some 28,000 interest rate protection products have been sold to businesses since 2001. It gave no estimate of how many customers would be entitled to redress, or how much it would cost the banks.

The FSA said the products range from simple caps that set an upper limit on the interest rate to more complex derivative products.