View more on these topics

RBS to add complaints process and refund fees

RBS-Building-500x320.jpg

Royal Bank of Scotland is to introduce a new complaints process and refund fees to business customers in its former Global Restructuring Group in a programme that is expected to cost the bank £400m.

The £400m covers operational costs, the refund of complex fees and redress costs from the new complaints process.

The automatic refund of fees applies to small and medium-sized enterprises that were customers of GRG between 2008 and 2013.

RBS today responded to the FCA-ordered review of those customers and admitted, in some areas, it could have “done better”.

The RBS statement says: “Specifically, the bank could have managed the transition to GRG better and should have better explained to customers any changes to the prices or complex fees it was charging. The bank accepts it did not always communicate as well or as clearly as it should have done. The bank also did not always handle customer complaints well.”

In a separate statement, the FCA summarises a report published by Promontory Financial Group, which was appointed as a skilled person to review RBS’s treatment of SME customers that were transferred to GRG between 2008 and 2013.

The report concludes RBS did not “artificially engineer” transfers of customers to GRG nor was there a widespread practice of transferring customers to GRG for their value rather than their level of distress.

RBS chief executive Ross McEwan has apologised that the bank did not provide the level of service it should have.

McEwan says: “Although the FCA review into the historical operation of GRG continues, we believe that now is the right time to deal with the areas where we accept some customers were let down in the past.

“The culture, structure and way RBS operates today is fundamentally different from the period under review. We have made significant changes to deal with the issues of the past, so that the bank can better support SME customers in financial difficulty whilst also protecting the bank’s capital.”

Recommended

RBS-logo-700x450.jpg

RBS to miss Williams & Glyn sale deadline

Royal Bank of Scotland has admitted it will miss the deadline to sell off the Williams & Glyn business as it posts losses of £463m for the three months to September. RBS is required to offload Williams & Glyn under European state aid rules following the bank’s bailout during the financial crisis. It emerged earlier […]

RBS-logo-700x450.jpg

RBS sets aside £1.3bn for legal and redress costs

Royal Bank of Scotland has posted a £2bn loss in the first half of the year and set aside £1.3bn for legal and redress costs. The bank’s provisions cover missold payment protection insurance, a legal challenge relating to its rights issue in 2008, and an industry review of tracker mortgages in relation to its subsidiary […]

RBS-Building-2012-700x450.jpg

RBS axes another 900 roles

RBS is cutting a further 900 jobs as part of a drive to save £800m this year. According to the BBC, the roles will mostly be back office and IT jobs. The announcement follows RBS cutting back its face-to-face advice service in March leading to around 550 job cuts and the closure of 32 NatWest […]

Insurance - thumbnail

The lucky ones

By Denise Wond, Marketing Relationship Manager, Royal London Do you consider yourself lucky? I don’t; I never seem to win a prize in the raffle, if there’s a cancelled train it’s usually the one I’m meant to be on and don’t start me on last year’s holiday. On the other hand, when I think about […]

Newsletter

News and expert analysis straight to your inbox

Sign up