UK business secretary urges banks to act quicker on mis-selling payouts

25 July 2013

Banks in the UK are reacting too slowly when paying out compensation to individuals and companies that were mis-sold financial products, according to the business secretary Vince Cable.

He is now calling on institutions to offer quicker payments with greater levels of transparency.

Banks such as Barclays, HSBC, Royal Bank of Scotland and Lloyds agreed to compensate some small and medium-sized businesses that bought swaps after a probe by the financial regulator.

The institutions have been putting millions of pounds to one side to cover the payouts as a result.

In a meeting with Financial Conduct Authority chief Martin Wheatley on Wednesday (25 July), Mr Cable said banks need to handle claims swiftly to help relieve the constraints on struggling enterprises.

He said he is "frustrated" by the lack of progress on the compensation companies are owed as a result of the mis-selling of interest rates swaps.

"I meet many small businesses as I travel round the country who have been afflicted by this scandal and those who deserve compensation should not be left waiting any longer," he said.

By Asim Shah

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