MPs have criticised Royal Bank of Scotland Group’s (LON:RBS) decision to wind down the contentious compensation programme it set up for victims of its restructuring division, The Times reports. The lender, bailed out by the UK government during the financial crisis, unveiled the £400-million scheme in November 2016 to compensate firms mistreated by its Global Restructuring Group (GRG) which allegedly forced small company clients out of business to acquire their assets on the cheap.
RBS’ share price slipped on Friday, shedding 0.70 percent to close at 241.80p. The stock underperformed the broader UK market, with the benchmark FTSE 100 index closing marginally lower.
MPs criticise FTSE 100 group
The Times reported this morning that the All-Party Parliamentary Group on Fair Business Banking had said that the planned closure of RBS redress scheme was “troubling news for small business owners seeking access to justice”. The comments came after the lender said that the GRG redress scheme would close for new complaints, with the complaints rate having fallen to six per week from a peak of 35 in December 2016.
The FTSE 100 company has said that said that it would write to all remaining eligible customers to inform them of the scheme’s closure to new complaints on October 22.
The parliamentary group noted that it was “certain there is much more scope for appropriate redress”.
FCA consulted on closure
The Times quoted RBS as saying that the Financial Conduct Authority had been consulted on the closure of the complaints scheme.
“We have worked hard to ensure high-quality and fair decisions have been reached in response to the issues raised. These have been subject to rigorous independent assurance,” the lender’s chairman Howard Davies said, as quoted by the newspaper.