RBS, the tax payer bailed out bank, has hit the headlines again for mis-selling another product to its customers.
RBS have admitted using the Enterprise Finance Guarantee (EFG) to boost lending to SME businesses. Directors of businesses were told by the bank that the EFG cash would provide a 75% Government guarantee, omitting to explain that the guarantee was for the lender and not the business which would remain liable for the full amount. RBS also demanded personal guarantees from many of the directors for which they remained personally liable for. RBS sent letters to borrowers explaining that they would only be liable for 25% of the loan.
RBS have waived a number of the personal guarantees as a result of the mis-selling and it is important that if a bank is pursuing you under a personal guarantee you review the paperwork to see whether the loan has been mis-sold to you.
It is important for anybody facing financial difficulties, whether personally, directors of limited companies or partnerships, to seek advice from a licensed insolvency practitioner as soon as possible.
For more information on bankruptcy, liquidation, administration and all other insolvency procedures, or to take advantage of our free consultation, please telephone Stella Flemmings on 01377 257788, 01724 230060 or 01904 520116 and she will make you an appointment with one of our insolvency professionals at our Driffield, Scunthorpe or York offices.
Redman Nichols Butler has had a York office for six years now. John Butler specialises in advising SME businesses in York and North Yorkshire. The Redman Nichols Butler York office address is Westminster Business Centre, Nether Poppleton, York, YO26 6RB.
Redman Nichols Butler has had a Driffield office for 19 years now. Andrew Nichols specialises in advising SME businesses in East Yorkshire. The Redman Nichols Butler Driffield office address is Maclaren House, Skerne Road, Driffield, East Yorkshire, YO25 6PN.
Redman Nichols Butler has had a Scunthorpe office for nearly 5 years now. Mark Neumegen specialises in advising SME businesses in Scunthorpe, Grimsby and all over North East Lincolnshire. The Redman Nichols Butler Scunthorpe office address is Suite 8b, Normanby Gateway, Lysaghts Way, Scunthorpe, DN15 9YG