The RBS Global Restructuring Group Redress Scheme – Avenues for Recovery of Redress

On 22nd October 2018, RBS closed its Global Restructuring Group (“GRG”) complaints process to new complaints. This means that all claims for ‘Direct Losses’ must have been submitted by that date to RBS in order to be assessed under the GRG Redress Scheme. There are, however, still other options for recovering losses if that deadline has been missed, such as a court claim or a complaint to the Bank and/or via the Financial Ombudsman Service.

Following assessment of a complaint under the Redress Scheme, RBS will decide whether to uphold it, and if so, may offer to refund the complainant’s direct losses plus interest. This initial step relates only to the recovery of ‘Direct Losses’, which are:

“Sums of money paid by a Customer to RBS; and

A Customer’s out of pocket costs of meeting RBS’ requirements”

This may therefore include arrangement fees, monitoring costs, increased interest payments, Property Participation Fee Agreement (PPFAs) charges, and third party consultant fees.

If a complaint is upheld under the RBS GRG Redress Scheme, the Bank’s response can either be accepted or can otherwise be appealed to retired High Court Judge, Sir William Blackburne (otherwise known as “the Independent Third Party”).

Appealing the Bank’s Outcome to the Independent Third Party

There are strict time limits for making an appeal and it is therefore important that the preparation of any appeal is progressed quickly. The information submitted to the Independent Third Party may include detailed further arguments and evidence to show why the Bank’s initial outcome is incorrect.

If the appeal is then upheld, the Bank will send out a revised outcome letter. That may be accepted or the complainant may otherwise wish to consider making a separate complaint to the Financial Ombudsman Service or issuing court proceedings. There are strict time limits which apply to court claims and Financial Ombudsman Service complaints and we recommend that legal advice is obtained and steps are taken to preserve the deadline to bring any such action. If those time limits are missed, the entitlement to continue with a claim or complaint may otherwise be lost.

Consequential loss claim

If the Bank’s outcome of the complaint is accepted, complainants may then seek to recover any ‘Consequential Losses’ that they have incurred. These are any losses which fall outside the definition of ‘Direct Losses’, and could, for example include the following:

• Loss of profit or loss of opportunity;
• Legal and professional advisors’ fees;
• The cost of additional borrowings;
• Losses from sales of assets at an undervalue;
• Tax losses; and
• Wasted management time.

The Bank will generally meet the reasonable costs of obtaining initial legal advice in relation to a consequential loss claim.

How we can help

Ellis Jones Solicitors has acted on a significant number of claims for direct losses and consequential losses, recovering in excess of £55 million for clients either via court proceedings or complaints against the Bank.

If you have been participating in the RBS GRG Redress Scheme or have otherwise been adversely affected by the actions of the Bank and would like to seek legal advice, then please contact Paul Kanolik on 01202 057737 or email, or William Fox Bregman on 01202 057740 or by email, from our specialist Banking and Finance Litigation Department.

Ellis Jones are able to offer a free initial consultation, and may also be able to act on a ‘no-win, no-fee’ basis.

If you would like to find out more about the RBS GRG scandal and process, further information can be found at the following links:

• RBS’ GRG Review Process – Recovering Your Consequential Losses
• RBS’ Global Restructuring Group (GRG)- Have you got a claim?
• RBS’ Global Restructuring Group- Project Dash for Cash
• £400m set aside by RBS to compensate GRG customers
• Concerns over RBS’ Compensation Scheme
• Banking update- FCA online leak of GRG review