RBS announces Compensation Scheme for GRG clients.
RBS has announced the creation of a new independent complaint scheme, overseen by a retired High Court Judge, for customers of its Global Restructuring Group (“GRG”), its department which dealt with distressed SME customers between 2008 and 2013.
In acknowledging that “it could have done better for SME customers in GRG”, the Bank announced that it would look at claims for compensation and refunds of fees.
Those eligible were customers of GRG between 2008 and 2013, where the business survived – Sadly, if the business went into an insolvency process as a result, the right to claim rests with the liquidators or administrators of those companies, with any award being shared amongst the businesses’ creditors. Cold comfort indeed, to directors who blame their business’ failures on the actions of GRG.
The scheme is also not “appropriate” for any complaint which has had a final determination from the Financial Ombudsman Service or is subject to, or likely to be subject to, litigation, although there may be some discretion on that point.
The scheme will cover a refund of some management or monitoring fees, asset sale fees, exit fees, mezzanine fees, ratchet fees, risk fees, and late management information fees. Fees relating to property participation fee agreements and equity participation agreements are also included. One significant point to note is that the bank has reserved the right to “set off” any compensatory award against any monies still outstanding to RBS from the business. Businesses can also complain about their treatment.
If you’d like to discuss any claim your business may have, please contact Pamela Muir.< Back