RBS to close redress scheme despite ‘snail’s pace’ of claims

RBS is closing the redress scheme for small firms to make claims relating to the lender’s controversial turnaround unit Global Restructuring Group (GRG), despite accusations that it has “moved at a snail’s pace”.

The complaints process, which was opened to UK customers in November 2016 alongside an automatic refund of complex fees, will close to new complaints in the UK on Oct 22.

RBS completed the refund scheme a year ago, making offers worth £115m to 3,500 customers.

It said it had consulted retired High Court judge Sir William Blackburne, who has been overseeing the process as an independent third party, and the City watchdog, the Financial Conduct Authority, regarding the closure of the complaints process.

The bank will consult with the Central Bank of Ireland about a deadline for customers in the Republic of Ireland, who were informed about the complaints process two months after those in the UK.

Mike Cherry, national chairman of the Federation of Small Businesses, said: “From the outset, the GRG redress process has moved at a snail’s pace. A decade on from many of these cases arising, we still have a situation where a third of claims are unresolved.”

He added that the independent consideration of consequential loss claims “only started a few weeks ago”.

“Now we’re being told it’s ending in the very near future.”

RBS said it had received 1,230 complaints from the 16,000 customers that were eligible to use the scheme, and a further 165 complaints from those outside its scope. It has issued a conclusion in 803 cases and had upheld 370 in full or part, making offers of just over £10m for direct losses.

Chairman Sir Howard Davies said: “Throughout the GRG complaints process … our focus has been on putting things right.”