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Interest rate swap redress hits £1.5bn

The total amount paid out in redress for interest rate swap misselling by major banks has hit £1.5bn.

The latest FCA data shows that as of the end of September, £1.5bn has been paid out and around 10,000 customers have accepted a redress offer.

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 sent 17,000 redress letters to customers, 14,000 of which include a cash redress offer and 3,000 of which confirm the sale complied with FCA rules or resulted in no customer loss.

Since March, around 1,500 customers have opted to join the review. The FCA says 1,200 of these cases have been determined and the remainder will be dealt with over the next few months.

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 regulator expects the work of the banks to continue until the end of the year.



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