Rogue RBS unit drove thousands of struggling businesses deeper into trouble, report claims

A ROGUE unit of RBS drove thousands of struggling businesses deeper into trouble, a watchdog’s report reveals.

Its Global Restructuring Group aggressively pursued small companies with a rate swap product to help them out of difficulties.

Reuters

The report says that only 10 per cent of the firms seen by the unit recovered sufficiently to return to the main bank[/caption]

But just one in ten of its customers recovered sufficiently to be able to return to the main bank, the leaked report from the Financial Conduct Authority says.

In all, 92 per cent of firms seen by the unit experienced some form of inappropriate treatment, such as them having to pay higher charges or add-on fees.

The GRG operated from 2005 to 2013 and, at its peak, handled an estimated 16,000 companies.

The unit offered customers a deal to fix the rate on a loan to protect them from interest rate rises.

However, it cost them dear when rates fell.

Three other banks — Barclays, HSBC and Lloyds — have admitted mis-selling similar products.

PA:Press Association

The scandal has generated several court cases in recent months as the small businesses hit by the mis-selling scandal seek justice[/caption]

RBS, which is 73 per cent state-owned, said it had apologised and taken steps to put things right.

Reuters

Barclays, HSBC, and Lloyds – have admitted mis-selling the so-called interest rate hedges[/caption]