Following previous updates on the progress of the Global Restructuring Group review process by the Royal Bank of Scotland (RBS), we take this opportunity to consider the current figures.
The current update provided by RBS dated for 4th May 2018 reveals that a total of 580 complaints have been responded to by the Bank, less than half of the 1278 complaints that have been received to date. An average of 25 claims per week are quoted as advancing through each stage of the process.
As has been the case in the previous weekly updates, the average amount of compensation awarded has increased. Across the 170 complaints on which compensation has been offered, the figure now stands at £32,931. This may lend some credibility to previous suggestions that RBS is being selective in the claims it responds to at the moment, gradually working through the smaller claims up to the larger value ones.
The average payment figure does, however, take into account the approximately £1.5m that had already been paid under the Bank’s automatic complex fee redress scheme which did not involve any in-depth consideration of the circumstances behind the fees.
Although the Bank claims that consequential loss claims which can be made after the Bank has upheld a claim for direct loss, this will increase the overall sum paid out which maintains that the originally quoted £400m set aside for these claims remains adequate.
For those looking to submit consequential loss claims, it is important to note that payment under the automatic complex fee redress scheme does not constitute a claim being upheld. It would, in fact, be necessary for a complaint to be raised with RBS and for them to uphold that the fees were improperly charged before the consequential losses could be considered.
Speaking to The Times, Sir Vince Cable has said, “To see that RBS is processing this compensation, which is almost certainly too little anyway, so slowly is another disgrace in this scandal and suggests that the current leadership of RBS has not learned from the many failures of its predecessors.”
Overall any progress by RBS is likely to be seen as too little and certainly too late.
If you have been affected by RBS and are looking to raise a claim or need assistance submitting a claim for consequential loss, please get in touch. Seneca Banking Consultants can be contacted on 01204 322 805 and can assist with a wide variety of banking claims.