Saturday, July 12, 2014





UK watchdog investigates banks for mis-selling


March 16. 2013 11:02PM
Story Tools
PrintPrint | E-MailEMail | SaveSave | Hear Generate QR Code QR
Send to Kindle


(AP) The Financial Services Authority said Thursday it is reviewing practices of the U.K.'s big retail banks after finding serious problems with the sale of interest rate hedging products to small businesses.


The authority said Thursday the review will include Barclays, HSBC, Lloyds and RBS banks. The authority said in a statement that the banks have agreed to review sales and provide redress to customers in a process overseen by independent reviewers.


The FSA had announced in June 2012 that there were significant failings in the sale of IRHPs, which were marketed as a way for businesses to protect themselves from rate increases.


The authority's new statement says that in a review more than 90 percent of the 173 cases it studied turned up at least one regulatory violation.


Where redress is due, businesses will be put back into the position they should have been without the mis-sale, said Martin Wheatley, CEO-designate of the Financial Conduct Authority.


UK banks have so far set aside 12.3 billion pounds ($19.6 billion) to compensate customers who bought payment protection insurance which they didn't need.


The Financial Services Authority also said that IRHP sales by Allied Irish Bank (UK), Bank of Ireland, Clydesdale and Yorkshire banks, Co-Operative Bank and Santander UK are being scrutinized. It said those banks are likely to launch their own reviews in the next two weeks.


Associated Press


Comments
comments powered by Disqus Commenting Guidelines
Poll
Mortgage Minute


Search for New & Used Cars

Make 
Model
 
Used New All
 

Search Times Leader Classifieds to find just the home you want!

Search Times Leader Classifieds to find just what you need!

Search Pet Classifieds
Dogs Cats Other Animals



Social Media/RSS
Times Leader on Twitter
Times Leader on Youtube
Times Leader on Google+
The Times Leader on Tumblr
The Times Leader on Pinterest
Times Leader RSS Feeds