LEXLAW Solicitors & Barristers
RBS’s Global Restructuring Group (GRG) has faced allegations of destroying small businesses. LexLaw has sued RBS on behalf of many businesses including Bowlplex, a family-owned bowling business, claiming excessive fees, increased interest rates, and forced equity transfer. Despite a viable business, Bowlplex was transferred to GRG and ultimately sold on by RBS for a £9m profit and a £50m loss for the owners.
The Court of Appeal has allowed WW Property Investments Ltd to appeal against NatWest over mis-sold interest rate derivatives and the negligent conduct of the IRHP review. This landmark decision challenges banks’ redress offers and recognition of consequential losses, encouraging affected customers and SME victims to seek legal advice for potential claims. The ruling could impact limitation periods and existing non-advisory defenses employed by banks, with major implications for financial services litigation and previous IRHP Review outcomes.
Dentons and RBS face High Court allegations of deliberate non-disclosure of critical documents related to the controversial Global Restructuring Group (GRG), disrupting fair trial processes. This follows leaked “Dash for Cash” documents exposing RBS’s serious breaches of disclosure duties in Wall v RBS litigation, where RBS allegedly forced Opal Property Group into financial distress. Previous cases have also highlighted RBS’s poor disclosure practices and lack of candour, raising ongoing concerns about RBS’s litigation culture and compliance with court orders.
RBS announces a New Complaints Process and Complex Fee Refunds for SMEs in their GRG division between 2008 to 2013. This process has serious flaws.
The FCA’s review of RBS’s Global Restructuring Group (GRG) found no widespread evidence that RBS deliberately engineered transfers of viable businesses to GRG or acted as a “shadow director.” However, the review revealed systemic failings including poor communication, inadequate turnaround support, undue focus on pricing and debt reduction, poor valuations, conflicts of interest linked to West Register, and unfair complaint handling. Over a third of SMEs transferred to GRG faced insolvency regardless, but many also suffered inappropriate treatment.
The FCA has stated it will not rush the delayed report on RBS’s Global Restructuring Group (GRG) due to the complexity and importance of the investigation. The report, highly awaited following allegations of misconduct by GRG, aims to thoroughly assess RBS’s treatment of SMEs and the bank’s recovery practices.
SMEs who claim they were mistreated by Royal Bank of Scotland’s turnaround division, GRG, await to see if the City regulator will set up an FCA-agreed GRG compensation scheme.
The High Court criticised Dentons and RBS for a “cavalier” attitude toward disclosure in litigation, specifically failing to comply with a court order to produce around 25 million relevant documents related to LIBOR misconduct allegations. Proper disclosure is vital to ensure fairness in litigation, but RBS has a history of inadequate disclosure, including being found to have deliberately withheld documents in previous cases. This pattern raises serious concerns about RBS’s litigation culture and compliance with court rules.
Our litigation against Barclays involved a claim for approximately £4 million relates to the mis-selling of derivatives, specifically interest rate swaps (IRHPs). The case addressed allegations that Barclays sold complex, high-risk products to clients without proper disclosure or adherence to regulatory requirements.
RBS has agreed to a £1 million settlement with a businesswoman who accused the bank of mis-selling complex derivatives. The case highlights banks selling unsuitable financial products to businesses. RBS initially denied wrongdoing but eventually agreed to the settlement, which includes repayment of derivative payments, break costs, and suspended payments. The businesswoman’s business was negatively impacted by the mis-sold derivatives, and the case exposes flaws in the Financial Conduct Authority’s IRHP review scheme.