Tomlinson brands RBS complaints scheme a ‘PR stunt’
Allegations that the Royal Bank of Scotland has “significantly and without notice” altered the terms of its complaints review scheme have caused entrepreneur Lawrence Tomlinson to label the scheme a “PR-motivated stunt”.
Seneca Banking Consultants have found that RBS’ Complaints Review Scheme, which seeks ostensibly to redress businesses affected by its Global Restructuring Group, has been altered.
Seneca says that the change forces customers to accept the first compensation offer made by the bank, which will be voided if an appeal is made.
Any offer will lapse if not accepted in 28 days, and immediately upon any appeal against a decision made to the independent third party, it said.
Seneca says this takes away the “natural right of response” and goes against common practice, which would have seen the bank accept such a response and either make an improved offer, or maintain the original award.
RBS’ Global Restructuring Group (GRG) was forced into the spotlight after it came to light that GRG was stripping viable businesses of their assets and chasing them for any profits to boost revenue for the bank.
The damning Tomlinson Report, published by entrepreneur Lawrence Tomlinson of the Garforth-based LNT Group in 2013, as well as a BBC and Buzzfeed investigation, found that the bank partook in overly aggressive tactics in dealing with business customers.
Tomlinson has responded to the reports by Seneca, saying that RBS’ downgrading of the scheme could be seen as a “cynical attempt to shut up the critics”.
He said: “When RBS announced the compensation scheme and apologised to GRG customers in November 16, it had the potential to be a remarkable moment in British banking history.
“It was a belated admission of mistreatment- three years after my report – but finally there was some recognition at the top of the financial sector that wrongs committed to customers should be righted and accountability taken for misdeeds. Yet here we are, just four months later, and it appears that the leopard hasn’t changed its spots.
“Publicly, the bank will be seen to have “done the right thing” – which will fit well with their NatWest’s new brand moto “We are what we do”. In reality, GRG customers and their representatives are already reporting that RBS are using the scheme to limit other liabilities they may have, forcing the customer to agree to settlements within short timeframes and discouraging appeals for fairer settlements.
“Now the Financial Conduct Authority is distancing itself from plans to publish its full report into the behaviour of GRG, RBS looks to be seizing the chance to water down its commitments without regulatory rebuke.
“As it transpires, the GRG compensation scheme could be regarded as a cynical attempt to shut-up the critics through a PR motivated stunt, with the added-benefit of heading-off potential legal challenges at the pass.”
He urged the Financial Conduct Authority to publish its report in a “reasonable time-frame”. City AM recently found that the long-awaited report into RBS’s Global Restructuring Group had cost the FCA £40,000 in monitoring and preparation alone.
Daniel Fallows, director at Seneca Banking Consultants, said: “My concern is that the Bank’s policy in treating any appeal as a rejection of the original decision will force customers to reluctantly accept any offer made by the Bank in the first instance, regardless of the merits of an appeal to the ITP.”
Seneca have raised concerns to Andrew Bailey, chief executive of the FCA, in an open letter outlining the shortcomings of the GRG Redress Scheme, and the lack of communication around the T&C changes, urging for a ‘just, prompt outcome’ for the businesses affected.
