SMEs stand up against GRG
Around 800 small businesses are planning to sue the Royal Bank of Scotland after being placed in the lender’s Global Restructuring Group (GRG).
Businesses in financial distress were often placed in GRG who would then work with the business to help them overcome these difficulties and plan for the future. However an expose by Lawrence Tomlinson alleged that lenders deliberately and unnecessarily put businesses in GRG for their own gain.
Simon Cottrell, Senior Partner, comments:
“It’s great to hear that businesses are not letting lenders get away with this latest example of deception and dishonesty and are being proactive in their approach.
“We have been very critical of the FCA’s review into interest rate swaps mis selling and the suggestion that businesses can or even should try and resolve this matter directly with their lender without the need for independent legal representation.
“These claims are worth hundreds of thousands of pounds and the success of which should not be left in the hands of those who caused the situation in the first place, particularly in the case of GRG claims, many of which have resulted in the business going into administration.
“Our specialist commercial litigation team are already helping businesses wrongly placed in GRG and other business support units. Contact them to talk through your options.”
Content correct at time of publication