Banks accused of ripping off businesses with complicated loan hedging contracts have settled with just 125 companies for £15.3 million.
Despite months of reviews and negotiations, most of the £3 billion set aside as compensation in the misselling scandal remains untouched.
Regulator the Financial Conduct Authority (FCA) does not expect lenders to nit anywhere near a 12 month target for repaying diddled firms.
Many firms have waited six months or more for the outcome of bank reviews.
The suspicion is the banks are slowing down the process to delay payments.
Now, the FCA is writing to Royal Bank of Scotland, HSBC, Barclays and Lloyds, telling them to sort out the problem or face possible penalty action.
Slow progress
“Progress is a lot slower than expected,” said an FCA spokesman.
Anthony Browne, CEO of the British Bankers’ Association, said: “The banks are committed to completing the reviews quickly.”
Meanwhile, the regulator is also putting bank and building g society saving accounts under scrutiny to make sure consumers are receiving value for money.
More than 80% of adults have a savings account – and more than 6 million were opened in the past 12 months.
In total, £1.2 trillion is squirrelled away in cash savings.
Unregulated providers
The FCA wants to look at how the accounts are working for ordinary savers to make sure competition between the banks is working in favour of customers.
The regulator also wants to make sure savers can easily switch their money between banks without cost or restriction.
Unregulated providers will also be pulled into the review.
“Examining consumer behaviour will play a large role in the study,” said the FCA. “The market seems to have low switching rates and savers do not seem to understand the benefits and costs of changing providers.
“This may be because providers are not making enough information available to consumers.”
Warnings about bogus advisers
The FCA has also issued two warnings about bogus firms posing as regulated financial advisers:
- British Greatfount Capital / GF Capital
- Nationwide Property Buyers Limited
- GF Capital / British Greatfount Capital (UK)
- Global Corporate Partners
- Tolland & Boch Limited
- Wellz Zable Limited
- Skandia Invest (clone firm)
- First Asset Management Ltd
- Protect Life Insurance
Dealing with an unregulated firm
If you buy shares, save money or invest with an unregulated firm, you lose any protection offered by the Financial Ombudsman and the Financial Services Compensation Scheme. Broadly, you have no independent place to complain if the deal goes wrong and are unlikely to win any compensation.
Checking if a firm is regulated
Go to the Financial Services Register to check if a firm is regulated in the UK.
Reporting a suspected bogus adviser
Find out how to report unauthorised advisers on the FCA web site
