'Goes away or goes under'? Are the banks dragging their feet on mis-selling?

Laura Kuenssberg

Former Business Editor

RBS has been accused of 'deliberately delaying' finding on compensation claim. Credit: John Giles/PA Wire

After a vigorous campaign last year, thousands of businesses around the country were rewarded by the promise of compensation for mis-selling of interest rate 'swaps', a bit like insurance policies.

They were policies sold to protect them from the risk of soaring interest rates, that with years of rock bottom interest rates, actually led to them losing out.

But that promise is taking an awfully long time to keep.

Only just over a thousand claims have been settled so far, with some going under before the case could be resolved.

And one Derby charity is tonight accusing RBS of dragging its heels over their claim, leaving them at risk of having to close down services.

Debt charity Direct Help and Advice believes its future is in jeopardy after they were sold an interest rate policy they claim they should not have been given, costing it at least £150,000.

They claim the bank persuaded them to take on the deal in early 2009 with the promise that it was a 'zero cost' option.

They also say they were not told it would cost £250,000 to exit the deal.

The charity says the hearing considering its claim was back in August, but they still are waiting, leaving the future of the charity's finances - and its services for vulnerable people - uncertain.

Rafe Nauen, Chair of Trustees, said:

RBS told ITV tonight that the charity's case is likely to be resolved soon and they have apologised for the frustration of it taking some time.

The process to resolve claims over mis-sold swaps is not necessarily straightforward.

Industry sources have suggested that buyers should have been more aware of the nature of the deals they were signing up to.

But many customers - the DHA charity included - believe that the risks were never pointed out to them, and that the banks are now dragging their heels in making up for past mistakes.