The bank which ‘earns your trust’ was in the headlines again last week. In a letter to MP Andrew Tyrie, the bank has claimed that it does not need to increase the amount set aside to compensate businesses affected by GRG, stating that “it is highly unlikely that businesses suffered material financial distress as a result of the bank’s actions”
Tyrie, who leads the Treasury Select Committee, had asked RBS Chief Executive Ross McEwan if the £400m compensation scheme announced on 8th November 2016 was really enough acknowledging that there are groups with claims against the bank already totalling £2 billion. McEwan had responded saying the money was to repay sales charges which should have been explained more clearly and not to repay large numbers of customers who say the bank deliberately pushed their companies into administration.
Tyrie wrote a separate letter to the FCA asking the watchdog to fix a publication date for the long delayed Section 166 report into the allegations aimed at the bank. FCA boss Andrew Bailey replied to say they (the FCA) would publish a full account of their findings when practicable once work was concluded. No date was confirmed and he did state that the report itself would be publically available although essentially taxpayers will have paid for it.
This latest round of communications simply serves to reinforce the view that the FCA are not holding RBS to account and GRG victims will be forced to consider court proceedings if they are to secure anything like proper compensation.
If you have been affected by the activities of RBS and GRG, we recommend that you have the prospects of any potential claim assessed immediately by our banking experts. Similarly if you have been provided with an offer of compensation from RBS under it’s new complaints scheme, please contact us so we can assess your offer and advise if acceptance is in your best interest.
To find out more about the issues raised in this post, or to discuss any queries regarding RBS, their compensation scheme or any other matters of banking misconduct get in touch with our expert banking and finance team or call +44 (0) 161 829 2599.
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