RBS alleged treatment of 1000 companies 'morally wrong'

RBS building sign

More than 1,000 companies have come forward with allegations of 'morally wrong' treatment at the hands of the Royal Bank of Scotland’s restructuring division, MPs have been told.

The Daily Telegraph reports that Lawrence Tomlinson told the Treasury Select Committee that his 'dossier' of cases against RBS’s Global Restructuring Group (GRG) had 'continued to grow' since he published his independent report into bank lending practices in November.

At the time of the report, which claimed RBS was 'killing off' small businesses for its own profit, Tomlinson said he had been contacted by 200 companies. He said he had included 23 companies in his report to illustrate bad bank behaviour, of which 20 were clients of RBS.

The multi-millionaire businessman, who is a part-time adviser to Vince Cable, said he was ready to hand the dossier over to the Financial Conduct Authority to investigate. Although he admitted he had no evidence of criminal behaviour or even rule breaking, he said the cases pointed to behaviour that was 'morally wrong.'

He told MPs the GRG became a 'debt collection agency' which was used to boost the bank’s profits at the expense of small businesses. He claimed that workers in the GRG division had 'perverse incentives that go against growth' and seemed to be focused on closing companies down rather than rebuilding them.

To access the complete Daily Telegraph article hit the link below:

Tomlinson: RBS 'dossier' has complaints from 1,000 firms 

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