RBS cleared of wrong-doing
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- Published: Friday, 02 May 2014 08:11
- Written by News Editor
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The Royal Bank of Scotland has been cleared of deliberately putting small and medium enterprise customers in financial distress or out of business for its own profit in a recent report. Law firm Clifford Chance said it had found “no evidence” of wrong-doing by RBS and had found nothing to suggest small business customers had failed because of actions taken by the lender.
Many dentists have finance through RBS and were worried about an earlier critical report by businessman Lawrence Tomlinson, claimed that RBS was “unnecessarily engineering” SMEs to the point where they defaulted on their loans.
Clifford Chance has refuted Mr Tomlinson’s claims and said it could find no instances of the types of behaviour the businessmen described in his own report, which alleged viable companies had been forced into administration through disproportionately high fees and their assets sold off at below market prices to subsidiaries of RBS. “The bank has no financial incentive to unnecessarily bring about the customer’s insolvency by imposing unaffordable interest and fees. We found no examples where the bank deliberately charged interest and fees which it believed or knew that the customer could not afford,” said Clifford Chance.
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