The banks, mainly Barclays, HSBC, Lloyds and the Royal Bank of Scotland (RBS), have already completed all of their initial claim assessments and have asked 18,800 customers to join the review. Around 1,900 customers have yet to opt-in.

The regulator’s monthly update said banks were becoming faster at processing the reviews and were on track to achieve their 12-month time limits for completion.

So far 3,430 offers have been accepted and no redress was due in 962 cases. The rate of non-compliant sales stood at 96%.

It is projected that all redress for consumers who have opted in to the review will be determined by the banks by June at the latest.

In addition to the redress, banks are offering customers 8% simple interest to cover “opportunity cost” of being deprived of their money.

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The FCA said: “The banks’ ability to deliver against their projections will require timely engagement from customers. We would like to encourage the 1,900 customers yet to opt-in to the review to do so as quickly as possible.”

Failings

Failings in the way interest rate hedging products were sold were first discovered by the FCA’s predecessor, the Financial Services Authority, which ordered a full review of the sales early last year.

The FCA asked banks to speed up their processes of determining redress for consumers last November, leading several banks to split redress payments relating to the swap and consequential losses.

Earlier this year, the FCA urged small businesses to join in the review to avoid missing out on money due to them.

Read more on regulation HERE