Latest insights from our experts
How to get compensation if you were affected by Royal Bank of Scotland’s Global Restructuring Group
The Global Restructuring Group (GRG) was set up by the Royal Bank of Scotland (RBS) supposedly to help businesses which RBS had lent money to recover from difficulties caused by the financial crisis in 2008.
The allegations are that instead, GRG put businesses into the scheme in order to charge them additional banking fees, aggressively restructure, take control of their assets and actually sell these assets on for a profit to the bank.
Those who were subjected to GRG have said that far from helping them it actually engineered their default on loan obligations.
GRG’s actions meant customers lost not only the money spent on additional banking charges but also suffered huge consequential losses caused either massive reductions in cash flow and loss of assets or even being put out business altogether.
How does RBS’ review process work?
Royal Bank of Scotland (RBS) have announced a new complaints process for some of the customers whose banking relationship was handled by GRG. RBS will review customer-initiated complaints and, if a complaint is upheld, the customer will then have the opportunity to submit a further claim for consequential losses.
An independent third party, retired High Court judge Sir William Blackburne – has been appointed to monitor the bank’s award of customer’s direct losses but there is no right of appeal to in relation to a claim for consequential losses. RBS will withdraw of any offer made by the bank in the event of an appeal on consequential losses.
The process involves:
- Complaint investigation – the bank will investigate the complaint which must be initiated by the customer.
- Redress determination – the bank will then make an award of compensation for direct losses such as banking charges, additional interest and valuation fees.
- Consequential losses – if the bank upholds the complaint then it will assess what it considers fair and reasonable redress and permit a claim for consequential losses, which include the cost of being deprived of money and other losses suffered. Customers must prove their consequential losses to the bank.
What will RBS offer?
Eligible customers will automatically receive a refund of what RBS have called complex fees.
In addition, an eligible customer will be able to submit a complaint in respect of direct losses. Direct losses claimed need to be itemised and that the process is not simple, with a proper investigation of costs incurred which can require professional help.
If a complaint for direct losses succeeds the customer may submit a claim for consequential losses, which could be things like loss of profit caused by reduced cash flow or loss in capital value due to the inability to maintain or invest in property.