Banks accused of another insurance rip-off


Sky News has reported that banks selling firms interest rate protection have not adhered to guidelines and put profits before customers' interests.

This type of insurance is called 'swaps' because the bank and customer exchange loan repayments. If interest rates rise, the bank covers the increase in repayments for the customer. If they fall, however the customer pays a fee back to the bank.

The Financial Services Authority said it considered swaps so complicated they should only be sold to

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