Banks 'face new mis-selling scandal'

Britain's leading banks are facing allegations of mis-selling complex interest rate protection protection products to hundreds of small businesses.

All of the UK's major banks, including Barclays and HSBC, as well as taxpayer-backed lenders Lloyds Banking Group and Royal Bank of Scotland, are facing legal action which could lead to billions of pounds of damages for small and medium-sized businesses. The businesses claim the banks profited at their expense from pushing them to take out highly complex interest rate derivatives. Many of the claimants spoken to by The Sunday Telegraph said they were not aware of the significant costs attached to the products that were supposed to protect loans from upward movements in interest rates....