£1.5bn paid out in interest rate swap redress, says FCA

The regulator says that all nine banks involved in the scheme have now completed their sales reviews for customers who joined the scheme before March 2014, and have delivered redress letters to almost all these customers.

The banks have now sent 17,000 redress determinations to customers, 14,000 of which include a cash redress offer and 3,000 confirm that the IRHP sale complied with FCA rules or that the customer suffered no loss.

To date, around 10,000 customers have accepted a redress offer and £1.5 billion is being paid out, including more than £300 million to cover consequential losses. This means that so far 71% of offers have been accepted. For those banks who got their letters out earlier, the acceptance rates are nearing 90%.
 

The banks will also continue to assess customer claims for consequential loss. Every redress offer has 8 per cent simple interest per year added, but those who can demonstrate their losses exceeded that can submit a consequential loss claim.

As of September, 2,965 customers have submitted a consequential loss claim, half of which have been assessed. The banks have paid out £5m for these claims so far.

The FCA expects the work of the banks to continue until the end of the year.