Banks to compensate for 'swap' loan mis-selling
Banks must compensate thousands of small businesses who were mis-sold complex loan insurance, the Financial Services Authority (FSA) has said.
The deals saw variable interest rates swapped for fixed rates, and as interest rates fell many businesses were left paying excessive interest on their loans.
Some 40,000 "interest rate hedging products" (IRHPs) have been sold to small businesses since 2001 according to the FSA.
Simon Gompertz reports.
31 Jan 2013