In a change to its currently established GRG claims process, RBS has provided an agreement for consequential loss claims to be appealed to its Independent Third Party, Sir William Blackburne.
The change was announced by way of a letter to Junior Finance Minister, John Glen, which was then seen last week by various news agencies including Reuters and The Times. Despite attempting to resist previous calls for this very change, Ross McEwan is quoted in The Times as having said that RBS was listening to customer “feedback” to plug what was perceived as a “gap in our previous position”.
Consequential losses are those that were incurred as a result of the bank’s misconduct, but unlike direct losses were not made up of payments to the bank. This could include claims for loss of profits or opportunities caused by reduced cash flow.
As we have previously reported before, former customers can raise complaints about consequential losses, but they first need to have a claim for direct loss to be upheld under the current complaints process. A refund under the automatic complex fee scheme will not be sufficient to allow a consequential loss claim to be made.
It is unclear when exactly this new avenue of appeal will be made available to former customers as it is noted that RBS is still in talks with Sir William about the broadening of his current role. Reuters reports that this hoped to be completed “in the next few weeks”.
In a further move which is likely to draw some very diverse opinions from former customers, RBS announced that where companies were no longer active and were therefore unable to receive compensation, money would no longer pass to the bank. Instead, in these situations, it has been reported that compensation will be alternatively paid to charity. Specific details of this process are still yet to be provided.
If you require assistance in making claims for either direct or consequential losses caused by misconduct while part of GRG, please get in touch. Seneca Banking Consultants are experts in our field and have claimed millions in compensation for clients that have been mistreated by banks. Feel free to call us on 01204 322 805.