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Banks pay customers £81m for mis-selling products

BANKS have now paid out more than £81 million in compensation to customers mis-sold complex loan products, according to a watchdog.

The Financial Conduct Authority (FCA) said it was pleased that the pace of the interest rate hedging product review was speeding up.

The latest FCA data, which cover nine banks, shows just £500,000 had been paid in redress in August but that increased to £2m in September, then £15.3m in October.

The figure for November, published yesterday, confirms the total given back to customers and businesses has reached £81.2m.

The number of customers invited to join the review has increased from 15,000 in August to 18,400 in November.

Clive Adamson, director of supervision at the FCA, said: "I welcome the fact that these figures show the pace of the banks' reviews continuing to increase and more businesses and customers are starting to receive compensation payments, but we will keep the pressure on to ensure they continue to move as quickly as they can.

"Last month we wrote to the CEOs of the four major banks to re-assert our expectation that redress should be delivered to customers quickly and to agree practical ways to speed up the process.

"The banks' responses have been positive, with three of the four major banks saying to us they now expect to complete all initial redress determinations by May 2014."

Lloyds is predicting it will complete all the initial determinations of cases by April next year, Royal Bank of Scotland and HSBC in May and Barclays by the end of June.

Mr Adamson said the majority of banks in the review were making changes to keep the process moving quickly.

Details on how much each bank has paid out and how many cases it is reviewing were not available.

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