RBS farming customers could be in line for compensation

Farmers whose businesses were charged expensive and complicated fees from the Royal Bank of Scotland (RBS) could be in line for compensation.

RBS has announced an automatic refund of complex fees and a dedicated complaints process for small and medium enterprises (SMEs) that were handled by the bank’s global restructuring group (GRG) between 2008 and 2013.  

The move follows a report by the Financial Conduct Authority (FCA), which investigated complaints from hundreds of SME customers who claimed their businesses were deliberately decimated by GRG to add billions to its balance sheet.

See also: Bank destroyed my business, says livestock farmer

The FCA found that from 2008 to 2013, RBS did not set out to push customers into financial distress so that they could then be transferred to GRG.

However, it did find there were some poor practices that were systematic and arose from a conflict of interest between GRG’s twin interests – to help the bank commercially and to turnaround customers’ failing businesses.  

Communication with customers was poor and, in some cases, misleading.

The bank’s global restructuring arm had increased prices without proper consideration for the longer-term viability of their customer’s business.

Who can get compensation and how?

Farmers who were customers of RBS between 2008 and 2013 could receive automatic refunds from the bank.

They must be a UK or Republic of Ireland SME customer and have been under the control of GRG during that period.

These customers do not need to contact the bank, as RBS will start sending letters out in the next few weeks to inform customers that the fees they paid will be included in their fee review.

Former customers should also be refunded and interest will also be paid.

RBS said it was aiming to have completed most of the automatic refund during 2017.

Customers who want to make a complaint about GRG can complete a form [PDF] and email it to GRGCustomerHelpdesk@rbs.co.uk or write to GRG Customer Helpdesk, PO Box 71875, London N1P 1WZ, or telephone the helpdesk on 0800 0294 370.  

See the RBS website for more detail about the complaints procedure and the automatic refund.

What does RBS say?

RBS chief executive Ross McEwan said the bank would not apologise for accusations which had found to not be true – that GRG deliberately destroyed healthy businesses for profit between 2008 and 2013.

But he said: “We have acknowledged for some time that mistakes were made. Some of our customers went through what was a traumatic and painful experience as a result of the crisis. I am very sorry that we did not provide the level of service and understanding we should have done.”