Banks double payouts for swaps claims

Banks are making progress when it comes to getting compensation to customers who were allegedly mis-sold interest rate hedging products (IRHP). Payouts have now reached £306.3m from £158.6m in December.

In January, the number of offers accepted now stands at 2,092 - over double the number in December (1,040), according to figures from the Financial Conduct Authority.

And the number of customers in redress phases shot up to 9,000 from 7,500 in December.

The banks’ pace of reviews is continuing to rise, and they remain on track to compensate all customers within 12 months of starting the reviews, said the regulator.

Despite upping the pace of payouts, January’s figure accounts for only a small proportion of the £3bn set aside by major lenders to cover the cost of compensating their victims.