RBS closes GRG redress scheme

The complaints process, which was opened to UK customers in November 2016 alongside an automatic refund of complex fees, will close to new complaints in the UK on Oct 22.

The still majority state-owned lender said it had taken decision following a consultation with retired High Court judge Sir William Blackburne, who has been overseeing the process as an independent third party, and the City watchdog, the Financial Conduct Authority.

The bank said it will also consult with the Central Bank of Ireland before setting a similar deadline for customers in the Republic of Ireland, who were informed about the complaints process two months after those in the UK.

While critics have complaimed that the scheme has has “moved at a snail’s pace”,

RBS said it had received 1,230 complaints from the 16,000 customers that were eligible to use the scheme, and a further 165 complaints that were not.

As a result, it has issued a conclusion in 803 cases and had upheld 370 in full or part, making offers of just over £10m for direct losses.

RBS chairman Sir Howard Davies said: “Throughout the GRG complaints process … our focus has been on putting things right.”

Mike Cherry, national chairman of the Federation of Small Businesses, said: “From the outset, the GRG redress process has moved at a snail’s pace. A decade on from many of these cases arising, we still have a situation where a third of claims are unresolved.”

He added that the independent consideration of consequential loss claims “only started a few weeks ago”.

“Now we’re being told it’s ending in the very near future.”