Interest Rate Swap Mis-selling

Oral Answers to Questions — Treasury – in the House of Commons at 11:30 am on 11th December 2012.

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Photo of Jim McGovern Jim McGovern Labour, Dundee West 11:30 am, 11th December 2012

What steps he is taking to tackle interest rate swap mis-selling.

Photo of Greg Clark Greg Clark The Financial Secretary to the Treasury

The Government have been clear that the mis-selling of financial products is wrong, and we support the Financial Services Authority’s ongoing work to tackle the issue. The Treasury and the FSA have established monthly round-table discussions with the banks and the business groups to ensure that these concerns are addressed. We will continue to work with all parties involved to ensure that the banks provide the appropriate redress.

Photo of Jim McGovern Jim McGovern Labour, Dundee West

Constituents who have contacted me said that they are struggling and that they have been waiting for more than a year for the FSA review, during which time the banks have taken no remedial action whatever. What can the Minister do to help the victims of mis-selling now?

Photo of Greg Clark Greg Clark The Financial Secretary to the Treasury

I am glad the hon. Gentleman has asked me that question. I agree that customers who have been mis-sold products need quick redress, so I have pushed the FSA and it has agreed to implement a six-month maximum time scale for the banks to complete the review and provide the redress. I have also asked the banks and they have agreed to stop payments on these products for businesses facing financial difficulty.