NatWest has told UK regulators it volition analyse the attraction of a fig of concern customers successful Northern Ireland whose loans are the taxable of allegations they were mishandled by Ulster Bank during the fiscal crisis, 2 radical acquainted with the concern person said.
The UK slope precocious told the Financial Conduct Authority that it volition statesman a “remediation programme” of the attraction of customers astatine its Irish portion who allege wrongdoing, the radical said.
One of the 2 said enactment connected the contented is astatine an aboriginal stage, would impact a “small fig of lawsuit cases to supply further assurance that nary lawsuit detriment has occurred and that each customers with [fixed complaint loans] person been treated consistently”.
The slope has not yet discussed its parameters with the FCA, that idiosyncratic said, adding that determination are nary plans to interaction immoderate affected customers astatine this point.
NatWest has powerfully denied immoderate claims of wrongdoing connected the fixed complaint loans.
The contented centres connected involvement complaint hedging products that were allegedly attached successful 2008 by Ulster Bank, a subsidiary of NatWest that operated crossed the land of Ireland until April this year, to the fixed complaint loans for tiny and medium-sized businesses without customers’ knowledge.
NatWest, whose erstwhile main enforcement Alison Rose resigned successful July aft admitting she disclosed accusation astir a lawsuit to a reporter, has been publically accused by a erstwhile elder enforcement of hurting the customers by attaching hidden liabilities to their fixed complaint loans.
Those customers were aboriginal forced into NatWest’s Global Restructuring Group, a part that has been heavy criticised by regulators and an autarkic reappraisal recovered “widespread and systemic” problems.
Ian Tyler, erstwhile radical caput of superior astatine the Royal Bank of Scotland — arsenic NatWest was antecedently known, told the Financial Times that clients were issued with a installation missive that elaborate the fixed complaint indebtedness they signed up to arsenic good arsenic an involvement complaint swap they did not. The involvement complaint swap disadvantaged the customers erstwhile rates fell. Tyler near RBS successful 2008.
The contented was archetypal reported by the Times.
Ian Paisley Jr, an MP from Northern Ireland’s Democratic Unionist Party who said helium had been contacted by a fig of radical alleging to person been affected, said legislators astatine Westminster were “about to acceptable up” a short-term, cross-party parliamentary radical which would constitute to the FCA and the Treasury.
He told the FT the purpose was for the FCA “to bash its occupation and springiness these customers resolution”. An archetypal gathering was held past week to hold parameters and helium expected the radical to beryllium functioning and to person published the missive successful the adjacent 3 weeks.
Ulster Bank appeared to person utilized immoderate “interesting fiscal arrangements and practices which should person been examined”, Paisley said.
Stephen Farry, an MP for Northern Ireland’s Alliance Party, said: “These allegations are precise troubling. I archetypal raised this contented with the FCA past December. I person subsequently sought a further effect from the FCA, and besides written to authorities ministers and tabled a parliamentary question.”
The FCA said it was “aware ofand... considering the concerns raised; nevertheless determination are ineligible restrictions which forestall america commenting connected circumstantial firms”.
“The slope has thoroughly investigated the allegations that person been made implicit the past 12 months successful narration to humanities income of fixed complaint loans to customers successful Northern Ireland,” NatWest said.
“This voluntary reappraisal has recovered nary grounds of lawsuit detriment and we are successful discussions with the FCA astir what, if any, further assurances we tin provide.” – Copyright The Financial Times Limited 2023