Bully Banks warns of ‘baby toxic products’

A PRESSURE group which represents some of the estimated 40,000 small business victims of interest rate swap mis-selling yesterday urged its members to be on guard against what it described as “baby toxic products”.
By The Newsroom
Published 2nd May 2013, 09:58 BST

Bully Banks has raised concerns that banks might seek to substitute one type of “toxic” product with swaps of a smaller size or shorter lifespan – and not offer businesses the choice to opt out of successor products.

Bully-Banks’ chairman Jeremy Roe said yesterday: “Having won the up-front battle in establishing the principle of mis-selling there is real concern that small businesses could lose the war and fail to obtain the full and fair restitution due to them.”

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A spokesman for the Financial Conduct Authority said “huge progress” was being made in obtaining redress for victims of mis-selling, and the aim was to put customers back to a place they would have been in, if they hadn’t been mis-sold these products.

A British Bankers’ Association spokesman said the banks were complying with the redress process laid down by the FCA, and any compensation would be decided by that process.

The spokesman said the compensation or product that the organisation would be placed on after the redress process would be determined by the FCA review.