The Financial Conduct Authority (FCA) has said it could fine banks who mis-sold complex loan insurance products.
The deals were meant to give borrowers security against rising interest rates but with rates at an historic low many businesses saw their payments soar. A redress scheme set up by the FCA to review 30,000 cases in July 2012 has resulted in only 32 businesses receiving compensation to date. The products were sold to protect borrowers from interest rate increases. But with interest rates at an historic low many businesses have seen their payments soar. Any companies claimed that they were pressurised into buying these products by various major banks. They said they were told by banks that they could only have their loan on the condition they took out the swap deal as well, and that in some cases they were given very little time to make a decision.....Read more HERE