Leaked documents relating to The Royal Bank of Scotland’s, Global Restructuring Group (GRG), has uncovered shocking findings in regards to the allegations made against the bank.
Following the leak, RBS will now face stronger criticism for it’s unacceptable behaviour. The files which have surfaced confirm certain allegations made against RBS, and contradict the bank’s advice that GRG acted as an “intensive care unit” for failing firms.
GRG was set up initially to help struggling businesses, however internal documents have confirmed that RBS failed to protect SME’s, and instead forced them into distress. GRG chased profits, hit clients with massive fees and then snapped up their assets at rock bottom prices.
Victims have been able to sue the bank, however to do so, the business has had to find the necessary funds to mount a legal challenge. Sadly, because of the banks actions, most victims have limited means.
As GRG Experts, Seneca Banking has long been campaigning for SME’s to take on RBS and have achieved a number of successes against the Bank for GRG losses, with one client receiving a GRG related settlement worth north of £2.5m.
With the FCA report under increased demand, the release of leaked files regarding GRG, have suggested that a redress scheme may be released, meaning victims are able to claim compensation for the mis-treatment they have suffered.
To coincide with the leaks, Seneca Banking Consultants have been reaching out to corporates who have been taken advantage of by GRG and other Business Support Units (BSU’s).
Daniel Fallows, Seneca Director commented: “More and more banks have been cutting corners and offering insufficient redress. The Royal Bank of Scotland division often engineered defaults by borrowers to ensure that they were placed in GRG. Once there, SMEs would be billed with excessive fees, often forcing them into administration.”
Fallows continued by saying: “Undoubtedly, the biggest struggle for bank customers has been the need to obtain strong evidence to support their claims. Without this, there simply hasn’t been the opportunity for redress, and unfortunately many victims do not have the means to locate and provide the necessary evidence.”
The FCA’s review into the activities of GRG is being brought to a light, however there are still hundreds of companies who have not been provided with proper redress. With the recent release by Buzzfeed News and BBC News, tensions run high as many worry that they may be time barred from bringing a claim once their limitation date has passed, which will leave them with no route to recover expenses