A damning report has been leaked accusing RBS of mistreating many of its clients.
The Financial Conduct Authority has said the RBS department that was set up to help troubled companies has mistreated many of them.
The BBC reports that in the leaked report, some “inappropriate action” was found, such as the raising of interest charges or unnecessary fees being added. These actions were experienced by 92% of viable firms seen by RBS’s Global Restructuring Group.
GRG would come in when businesses had skipped a loan payment or saw their profits dip noticably, touted as an ‘expert service’ that would turn a business around.
However the leaked report, commissioned for the City watchdog, the FCA, found that these struggling businesses that were placed in the recovery group had little chance of ever emerging from it, with just 10% returning intact to the main RBS bank.
As of the end of 2014, 69% of firms, were still in the successor to GRG, which was supposed to return them to health.
Many ended up going into administration or liquidation. A BBC source said that instead of getting firms back on their feet, GRG was like their “undertaker”.
Tracy Standish ran a chain of 18 bowling complexes nationwide and banked with RBS for decades.
When sales dipped during the 2008 recession, his business was placed into the hands of GRG.
It applied a default charge of £100,000 to be paid immediately and raised the interest rate on some of his existing loans to 15% - exacerbating Mr Standish’s financial burden.
Mr Standish and his family had to surrender 80% of their company to the bank. He’s now suing RBS.
He said he was “devastated” by the actions of the bank.
“It was to suddenly not know where to go, to be completely lost. It was like an out of body experience. I just really didn’t know what had happened to my world, and where to go next.” said Mr Standish, from Poole.
“I must have been in shock maybe for a month… That just descended into full blown depression.
“I had to be referred to a counsellor for treatment, I was prescribed anti-depressants. And I became suicidal, and was so, for some period.”
RBS set up a £400m compensation fund to make redress. But some campaigners have suggested that the final figure could be closer to £2bn.
Have you or your business been affected by RBS? Do you believe to have been mistreated due to improper conduct?
For those affected by the professional negligence committed in this case, you may be wondering if you have grounds to claim.
Professional negligence can leave many in dangerous financial difficulty and ruin.
You should get in touch with a Professional Negligence solicitor you can trust.
At the Specter Partnership, we have decades of experience in helping professionals and business owners win compensation for professional negligence.
If you would like support and free, initial legal advice regarding lodging a claim for compensation for professional negligence, speak to us today by calling 0800 019 3460, or emailing us on firstname.lastname@example.org.