RBS Global Restructuring Group complaints deadline 22 October 2018
Small and medium-sized businesses are key contributors to economic growth within the UK, so fair access to funding is essential in order to help them trade successfully. On the face of it then, the Royal Bank of Scotland’s (“RBS”) Global Restructuring Group (“GRG”), which was set up to assist smaller businesses in financial distress, seemed positive.
In reality, the opposite materialised. A number of well-publicised and serious allegations were made in relation to the conduct of the GRG unit, details of which were set out in the 2013 report by Dr Lawrence Tomlinson, entitled ‘Banks’ Lending Practices: Treatment of Businesses in Distress’. The report alleges that RBS mistreated thousands of customers in financial distress by using its GRG unit to generate revenue through increased fees, interest margins and the devaluing of assets.
The GRG complaints was consequently set up in November 2016 to enable small and medium-sized UK business customers that were under the control of the GRG between 2008 and 2013 to make a complaint in respect of their experience, and seek redress where appropriate.
However, the time for making complaints is now drawing to a close. On 20 July 2018, RBS announced that the GRG complaints process will close to all new complaints on 22 October 2018. According to the announcement, all remaining eligible UK customers will be receiving notice of this deadline in writing over the coming weeks. We understand that RBS has only received 1,230 valid complaints to date, despite there being as many as 16,000 customers eligible to use the scheme.
What to do if you are an eligible customer
It is important that you consider making a complaint as soon as possible, if you are an eligible customer and feel dissatisfied about the way you were treated while in the GRG. We recommend that you seek independent legal advice as soon as possible to discuss your options and protect your position well before the deadline on 22nd October 2018.
Once this deadline has passed, any complaints about the GRG will be dealt with by the bank’s usual complaints procedure, and the option to appeal any resulting decision under the Redress Scheme will no longer exist.
That said, closure of the complaints process does not affect any legal claims or Financial Ombudsman complaints that might be made against the bank outside of the scheme.
How can we help?
Our GRG solicitors make up one of the largest contentious banking teams in the UK and are well equipped to help, whether you require assistance to formulate your complaint, or advice a little further down the line.
We have recovered in excess of £50million for clients in the last few years and have received a number of successful outcomes in relation to complaints made under RBS’ GRG Redress Scheme. We are happy to discuss flexible funding options and “no win no fee” agreements with our clients, should cost be a concern for you.
The GRG complaints process has moved at “snail’s pace” since its opening in 2016, with many complaints still unresolved. So, if you think you may be entitled to complain, don’t move at snail’s pace – get in touch with our expert GRG solicitors in our specialist Banking and Finance Litigation team, who will be able to offer an initial free consultation. The clock is ticking, and justice for many businesses is long overdue.
If you would like to find out more about the RBS GRG scandal and process, further information can be found at the following links:
- RBS’ GRG Review Process – Recovering Your Consequential Losses
- RBS’ Global Restructuring Group (GRG) – Have you got a claim?
- RBS’ Global Restructuring Group – Project Dash for Cash
- £400m set aside by RBS to compensate GRG customers
- Concerns over RBS’ Compensation Scheme
- Banking update- FCA online leak of GRG review