11 October 2016
RBS in ‘Dash For Cash’ Scandal
Leaked files have revealed that RBS is guilty of squeezing SMEs in order to boost their profits.
A cache of documents was recently sent to BBC Newsnight and BuzzFeed News by a whistleblower showing that the bank was trying to make money out of struggling businesses in what one executive called a ‘dash for cash’.
Royal Bank of Scotland staff were able to boost their own bonuses by finding companies which they could push into the RBS Global Restructuring Group (GRG).
The leaked documents show that RBS employees would target struggling business customers.
In the aftermath of the financial crisis we did not always meet our own high standards and let some of our SME customers down- RBS
Once in the GRG the bank charged higher interest rates, applied harsh fees and applied pressure on clients to sell assets off in order to repay their loans.
Between 2007 and 2012 the RBS GRG issued loans amounting to a total of £65bn and in 2011 they posted profits of £1.2bn.
In many cases, RBS then bought up assets of their clients cheaply after allegedly pushing firms to collapse by underestimating the value of their customers’ businesses.
Approximately 12,000 companies were put into the Royal Bank of Scotland’s Global Restructuring Group and over 140 of them are already suing the bank.
The lives of many business owners have suffered as a result of the treatment they received from the bank with some suffering mental and physical health problems.
RBS deny claims that they intentionally caused businesses to fail, but have admitted to letting some of their customers down, saying: “In the aftermath of the financial crisis we did not always meet our own high standards and let some of our SME customers down.”
Slater and Gordon Lawyers are assisting SMEs who are claiming or wish to claim compensation from the Royal Bank of Scotland Global Restructuring Group through an FCA redress scheme.
If you were affected by the RBS ‘dash for cash’ scandal contact our financial litigation lawyers on freephone 0800 916 9015 or contact us online.
Related PostsRSS feed
Wednesday 17th January 2018
Tuesday 08th August 2017
Tuesday 11th April 2017