The report by Entrepreneur Lawrence Tomlinson accuses many of Britain’s banks of ‘heavy handed profiteering and abhorrent behaviour’ in respect of distressed businesses. Mr Lawrence’s report which is most critical of RBS and Lloyds, investigates small business lending. In the damning report he was asked to prepare by Business Secretary Vince Cable, Mr Lawrence says that RBS and Lloyds have ‘harmed their customers through their decisions and caused their financial downfall’. Allegations against RBS include that ‘viable companies are being forced into default so that the bank can seize their properties at knock down rates’. Mr Lawrence also claims that RBS has been guilty of ‘systematic abuse of corporate customers since its rescue in 2008’.
The report released today will be followed by a final report conducted by Sir Andrew Large, former deputy governor of the Bank of England, which is also expected to be highly critical of the state backed bank.
Fraser Whitehead, National Practice Group Leader and Head of Group Litigation at Slater & Gordon said "We have a significant number of clients who have come forward who have suffered very badly as a result of these practices. We are not surprised to see the results of this report into Britain’s banking industry. At a time when small businesses need support through difficult financial times, it appears that they have been mistreated by the very banks that were meant to be helping them. Some businesses have slipped into financial downfall as a result. Jobs, businesses and homes have been lost.
Here at Slater & Gordon we are conducting our own investigation. We urge any small businesses who feel that they have been affected by these activities to contact our Group and Commercial Litigation team on 0808 175 7803 or email me directly on FWhitehead@slatergordon.co.uk. We believe that to avoid potentially costly litigation, a fair redress scheme should be set up. The focus must be getting business working again, and business owners and others who have suffered financial loss, need to be repaid quickly. Any scheme needs to be agreed by businesses and the banks and not just established by the banks alone. The process and the timetable must be focussed on speed and include interim payments.”
We will be working and coordinating with other groups such as Ordinary People in Business Ltd (Bullybanks) and RBS GRG Action Group.