The Royal Bank of Scotland (RBS) transferred many companies to its Global Restructuring Group (GRG) which resulted in businesses suffering a financial loss.
What is the GRG?
The GRG was set up by RBS and NatWest as a support unit for businesses that were experiencing financial troubles.
Many small and medium size businesses that were facing financial troubles were transferred to GRG. It was intended that GRG help these businesses become profitable by intense inspection and receiving additional support.
What went wrong with the GRG?
A recent report published by the Financial Conduct Authority (FCA) identified concerns with the way small and medium size businesses were treated by the GRG. The report focused on additional fees the businesses were required to pay and the additional burdens that were placed on the businesses.
The FCA identified that some businesses were placed under undue pressure by RBS. RBS encourage them to increase prices and reduce debts without considering the impact it would have on the business’ customers.
RBS has set aside a compensation fund of up to £400 million to compensate for those effected by a GRG transfer.
If your business was affected by a transfer to GRG, get in contact with our professional negligence team on 01924 457171 for a free consultation.