Group Litigation Lawyers at Slater and Gordon UK are investigating legal routes to recover financial losses for investors who have been potentially mis-sold the Enterprise Finance Guarantee provided to small businesses in the UK.
On 15th January 2015, RBS announced that they are to review the way in which the Enterprise Finance Guarantee was provided to UK businesses.
What is an Enterprise Finance Guarantee Loan?
Enterprise Finance Guarantee (EFG) is a UK Government lending initiative for small businesses with viable business proposals but who lack security for conventional lending.
RBS provided over 8,000 Enterprise Finance Guarantee loans to businesses in the UK and after discussions with the British Business Bank (BBB). They recognise that for a number of clients, the way in which the loan operated was not properly explained; especially with respect to how the borrower and guarantor liabilities work under the EFG scheme.
Allegations of Financial Mis-Selling against RBS
- Loans used by the bank to reduce overdrafts rather than to support growth.
- Business owners misled into believing that the scheme would protect them in the event of default.
- Business owners informed that they would only be 25% liable for any debt.
- Applicants encouraged to submit forms which did not list all the business assets in order to qualify for the loan.
Due to the serious nature of these allegations it is reported that the Serious Fraud Office (SFO) are considering a criminal investigation.
RBS claim to be putting these matters right and putting any customers affected back in the position that they would have been in, had the EFG been properly been explained.
Slater and Gordon’s Group Litigation Lawyers have proven expertise in large-scale financial mis-selling cases in the UK. We have a dedicated team of expert Group Litigation Lawyers available to work on class actions and similar claims.
Slater and Gordon Lawyers is one of the UK's largest specialist consumer and claimant law firms with offices in London, Manchester, Watford, Liverpool, Chester, Birmingham, Sheffield, Cardiff, Edinburgh, Cambridge, Milton Keynes, Preston, Wakefield and Wrexham.