Business News 31 Jan 2013

Business demands action as FSA reveals scale of interest-rate swap scandal

A leading business group is calling for action from the banks after the Financial Services Authority (FSA) revealed that more than 90% of interest-rate swaps were allegedly mis-sold to small firms.

In June 2012 four of the UK's main high street banks were accused of mis-selling interest rate protection products, which are designed to protect businesses taking out loans, in the event of interest rate rises.

The Federation of Small Businesses (FSB) welcomed the FSA's decision to revise the criteria for businesses looking to pursue a possible redress, however, it warned that banks need to take 'swift and decisive action' to compensate the businesses caught up in the scandal.

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