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Dispute Resolution

Royal Bank of Scotland – Global Restructuring Group

Many businesses, and some individuals, have been subjected to unfair treatment by their bank. The most notorious of these was the Global Restructuring Group (GRG) which was part the Royal Bank of Scotland (RBS).

Other banks including Lloyds/Bank of Scotland and Barclays used similar schemes.

Has Your Business Been Affected by The RBS Global Restructuring Group (GRG)…

Customers who were transferred from their normal banking relationship manager into a so called ‘business rescue’ arm such as GRG were often subjected to high bank charges and onerous conditions. These include: –

  • A cash sweep, where money was taken out of the Company’s account and applied to debt reduction;
  • A ‘risk fee’ being applied to the account of a monthly or quarterly amount with no disclosure regarding the nature or justification for the fee;
  • Margin increases, which were typically 2% or more, meaning that the cost of borrowing increased substantially;
  • Property Participation Agreements/Equity Participation Agreements were insisted upon, where the lender took equity in an asset or business, meaning they received a substantial fee on sale of the asset or shares in the business;
  • Requiring monthly management accountancy reporting which took substantial management resources and increased cost to the business;
  • Assets transferred to associated entities of the bank with a lack of transparency and substantial potential for conflict of interest;
  • Requirement to have expensive consultants placed in the business, often simply duplicating the work of the business;
  • Cutting of the overdraft of the customer, causing a cashflow crisis; and/or
  • Revaluing assets on a desktop basis to fabricate a customer default.

This caused substantial business interruption and cost and in some cases resulted in financial ruin.

Following the Tomlinson Report and the relentless bad publicity the Financial Conduct Authority (FCA) took action and instructed an independent U.S. body to prepare a report into the practices of GRG/RBS (the Promontory Report).

The Promontory Report has now been completed but not fully published. In response to the findings of the Promontory Report RBS has set up a £400M scheme to compensate customers who were maltreated by GRG (the GRG Compensation Scheme).

Get Advice on The RBS Global Restructuring Group (GRG) Compensation Scheme Today…

The terms of the GRG Compensation Scheme are opaque and independent oversight only occurs if the customer is not satisfied with the initial decision of the RBS. No other bank has as yet introduced a similar scheme, however it is anticipated that these will follow in due course.

In the meantime, companies affected by the behaviour can complain to their bank regarding their treatment.

Complaints against GRG are complex. We strongly recommended that people affected seek expert advice in relation to obtaining redress.

Oraclelaw acts on behalf of a large number clients who have complaints against GRG and other UK banks such as Barclays. Many U.K. law firms will not or cannot lodge complaints against the banks due to them being conflicted.

We are one of a small number of firms in the U.K. with the expertise to be able recover damages against the banks.

Compensation can be recovered by affected businesses and individuals who have been in GRG. Insolvent companies can make a claim against RBS for excessive charging.

We also act for the liquidators of numerous companies who were put into GRG and ultimately went out of business.

If you or your business has a potential claim against GRG or other U.K. banks, then you should contact Paul Fairbridge for an informal discussion and initial without obligation review.

Claims against RBS/GRG can be carried out on a no win no fee basis.

Paul can be contacted on alternatively contact John Carruthers on Both Paul and John can be contacted on 0141 332 0915.

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