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Police to Investigate Criminal Wrongdoing by Royal Bank of Scotland’s Global Restructuring Group
Police Scotland are to investigate alleged criminal offences committed by the Royal Bank of Scotland’s (RBS) Global Restructuring Group (GRG).
The controversial arm of the bank’s lending division has been accused of forcing businesses into default on their loans in order to levy increased interest rates and banking charges. Instead of achieving its stated aim of saving businesses, it is said many failed as a result of GRG’s actions. GRG is also accused of making profits on selling off the assets of businesses whose default they engineered.
Whistle blowers who worked for GRG have backed some of the allegations, saying there were orders from management to charge high fees to customers in return for bonuses.
There has been pressure on the bank, the Financial Conduct Authority (FCA) and the police to take action for some years, including from this firm. Now Police Scotland say they are investigating an individual criminal complaint against RBS.
The move by Police Scotland is just one more in a number of reports and investigations of RBS and GRG. The FCA has finally agreed to publish a summary of their own report into GRG but has refused to publish the full text. The FCA says they are now going to investigate further. This follows the Tomlinson report published under the last coalition government which made similar findings against RBS.
Further developments are expected. The FCA’s full report is going to be examined by the Treasury Select Committee’s own QC and Andrew Bailey Chief Executive of the FCA will also be appearing before the Committee on 31 October.
RBS have set up a complaints process for customers affected by GRG which is currently ongoing and is similar to that for the review of the sale of interest rate hedging products. It is vital that customers set out their complaint regarding GRG carefully since at present there is no proper appeals process for those who disagree with RBS’ decision. Decisions in legal claims pioneered by this firm have shown the courts are reluctant to challenge the outcome of the complaints process.
If you require any advice regarding a similar matter, please do not hesitate to contact our experienced team of dispute resolution solicitors.