RBS Unveils Complaints Process & Refund Of Complex Fees For SME Customers In GRG

(RTTNews) - Royal Bank of Scotland Group PLC (RBS, RBS.L) announced, with the agreement of the FCA, a new complaints process, overseen by an Independent Third Party - William Blackburne, a retired High Court Judge - and an automatic refund of complex fees paid by small and medium enterprise or SME customers in GRG during the relevant period. RBS estimated the costs associated with the new complaints review process and the automatic refund of complex fees to be about 400 million pounds, to be provided in the fourth-quarter of 2016.

RBS also responded to the Financial Conduct Authority or the FCA's update on its review into the treatment of SME customers in the bank's former Global Restructuring Group or GRG between 2008 - 2013 and its summary of the Promontory Financial Group report.

RBS admitted that it could have managed transition to GRG better and should have better explained to customers any changes to the prices or complex fees it was charging. The bank accepts that it did not always communicate as well or as clearly as it should have done. The bank also did not always handle customer complaints well.

Ross McEwan, CEO of RBS said, "We have acknowledged for some time that mistakes were made. Some of our customers went through what was a traumatic and painful experience as a result of the crisis. I am very sorry that we did not provide the level of service and understanding we should have done."

Separately, the FCA said that RBS's proposals were developed with its involvement. It agrees these are appropriate steps for RBS to take.

"While the FCA still needs to see further detail about how the scheme will operate, we believe that it is an important step for RBS to put in place an appropriate complaints review process which should provide certain SME customers with a route to make a formal complaint, should they wish to do so," the FCA said.