The Royal Bank of Scotland’s Global Restructuring Group (GRG) was a specialist unit set up in the bank with the aim of helping troubled business get back on track. It was supposed to help small business find their way out of financial difficulties, providing them with expert advice and assisting them with restructuring their debt. As it is known all too well by businesses who were unfortunate enough to be placed in GRG, the reality could not be further from the truth. In all too many cases GRG failed to live up to its objectives and instead of helping to...

Over the past several years MBM has had a lot of clients come to them with what they initially thought was a claim against their bank but which later turned into a claim against their previous advisers. In this blog Liina Tulk, Senior Solicitor in the Dispute Resolution team, considers circumstances where a banking dispute can turn into a professional negligence claim against previous lawyers.

Over 3 weeks have passed since RBS issued a somewhat half-hearted apology to its customers and announced that it would refund “complex fees” charged to customers they had placed in GRG (their Global Restructuring Group) during the years 2008 – 2013; and that it would consider fresh complaints by GRG customers about their treatment at the hand of the bank’s restructuring arm. During the last 3 weeks, a number of things have become clear: Customers will be excluded from the process if their business was placed in an insolvency process (either administration or liquidation) – the exact % of GRG...

In a spectacular illustration of the maxim “pick a good day to bury bad news”, RBS announced a compensation scheme for customers who were in their Global Restucturing Division (GRG) between the years 2008 – 2013, on the day of the US presidential election. As many will be aware, the detail of the scheme and how it will work is pretty thin on the ground just now, but RBS’ Legal Department confirmed that they intend to publish further details of the new complaints process, including the Independent Third Party appeal process, shortly. The bank have however been able to confirm...

MBM Commercial launches a new initiative to help small business join the RBS GRG Compensation Scheme. Click here to find out more.