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RBS 'wanted critic Tomlinson's mortgage back' | RBS 'wanted critic Tomlinson's mortgage back' |
(35 minutes later) | |
A businessman who wrote a government report that criticised RBS has been told he can no longer remain a customer of the bank, Panorama has learned. | A businessman who wrote a government report that criticised RBS has been told he can no longer remain a customer of the bank, Panorama has learned. |
In the 2013 report, Lawrence Tomlinson accused RBS of systematically wrecking viable businesses. | In the 2013 report, Lawrence Tomlinson accused RBS of systematically wrecking viable businesses. |
And in 2014, RBS deputy chief executive Chris Sullivan told him he would have to take his mortgage, business and personal accounts to another bank. | And in 2014, RBS deputy chief executive Chris Sullivan told him he would have to take his mortgage, business and personal accounts to another bank. |
But RBS said the decision had nothing to do with the critical report. | But RBS said the decision had nothing to do with the critical report. |
Mr Tomlinson's report accused RBS of using questionable property valuations to artificially downgrade viable businesses. | Mr Tomlinson's report accused RBS of using questionable property valuations to artificially downgrade viable businesses. |
He said the businesses had then been moved to the bank's Global Restructuring Group (GRG), which had charged extra interest and fees. | He said the businesses had then been moved to the bank's Global Restructuring Group (GRG), which had charged extra interest and fees. |
RBS denied GRG had treated customers unfairly. It commissioned its own inquiry, which rejected the main allegations in Mr Tomlinson's report. | RBS denied GRG had treated customers unfairly. It commissioned its own inquiry, which rejected the main allegations in Mr Tomlinson's report. |
'Broken down' | 'Broken down' |
But last June Mr Sullivan sent an email to Mr Tomlinson telling him to move his mortgage and all his bank accounts. | But last June Mr Sullivan sent an email to Mr Tomlinson telling him to move his mortgage and all his bank accounts. |
It said: "In view of your longstanding dissatisfaction with the bank, we have concluded that the required trust between you and the bank has irretrievably broken down. | It said: "In view of your longstanding dissatisfaction with the bank, we have concluded that the required trust between you and the bank has irretrievably broken down. |
"For that reason, we have concluded that we cannot continue a banking relationship with you either in a personal capacity or a corporate capacity." | "For that reason, we have concluded that we cannot continue a banking relationship with you either in a personal capacity or a corporate capacity." |
The bank eventually backed down over the mortgage on his home, but Mr Tomlinson had to find new bankers for his business, which employs more than 2,000 people. | The bank eventually backed down over the mortgage on his home, but Mr Tomlinson had to find new bankers for his business, which employs more than 2,000 people. |
He said: "I've been with them 20 years. I've tried to help them change, and they've cancelled all my business and personal accounts - I think to just create the maximum amount of disruption to me and my businesses" | He said: "I've been with them 20 years. I've tried to help them change, and they've cancelled all my business and personal accounts - I think to just create the maximum amount of disruption to me and my businesses" |
But RBS said trust had broken down because of a long-running dispute over a complaint Mr Tomlinson had made in early 2012. It said two investigations into this complaint had found no evidence of wrongdoing and that Mr Tomlinson had failed to attend a meeting to discuss the findings. | But RBS said trust had broken down because of a long-running dispute over a complaint Mr Tomlinson had made in early 2012. It said two investigations into this complaint had found no evidence of wrongdoing and that Mr Tomlinson had failed to attend a meeting to discuss the findings. |
Overdraft cut | Overdraft cut |
Panorama has also spoken to business people who accuse Lloyds Banking Group of using similar practices to those outlined in Mr Tomlinson's report. | Panorama has also spoken to business people who accuse Lloyds Banking Group of using similar practices to those outlined in Mr Tomlinson's report. |
Alison Loveday, a solicitor who acts for businesses in dispute with their banks, said Lloyds customers had also been shocked by low valuations. | Alison Loveday, a solicitor who acts for businesses in dispute with their banks, said Lloyds customers had also been shocked by low valuations. |
"After examining a number of cases, we did coin the term 'the Lloyds effect' because we could see the valuations were hammering the property value down as much as 50%," she said. | "After examining a number of cases, we did coin the term 'the Lloyds effect' because we could see the valuations were hammering the property value down as much as 50%," she said. |
Lloyds has also been accused of adding additional fees and interest when struggling companies are moved to its Business Support Unit. | Lloyds has also been accused of adding additional fees and interest when struggling companies are moved to its Business Support Unit. |
But the bank said its fees were appropriate and it made no commercial sense to undervalue property. | But the bank said its fees were appropriate and it made no commercial sense to undervalue property. |
It added the majority of customers who went into the Business Support Unit were helped back to financial health. | It added the majority of customers who went into the Business Support Unit were helped back to financial health. |
"More than two-thirds of customers get back to viability, to be treated like normal customers. That's over a thousand this year alone," Lloyds said. | "More than two-thirds of customers get back to viability, to be treated like normal customers. That's over a thousand this year alone," Lloyds said. |
But customer Ross Finch said the Business Support Unit had been anything but supportive and his hotel business had been charged an extra £298,000 in one year after being transferred to it. | But customer Ross Finch said the Business Support Unit had been anything but supportive and his hotel business had been charged an extra £298,000 in one year after being transferred to it. |
Then, three years after being transferred to the unit, Mr Finch was suddenly dropped as a customer. | Then, three years after being transferred to the unit, Mr Finch was suddenly dropped as a customer. |
He said: "I got a phone call from one of the people that we'd been dealing with who said, 'I've got to read you a statement.' At which point, they said we are selling your loan, we expect the transaction to complete today." | He said: "I got a phone call from one of the people that we'd been dealing with who said, 'I've got to read you a statement.' At which point, they said we are selling your loan, we expect the transaction to complete today." |
He says his business was trading profitably: "This was a solid strong resilient business that had got through the recession and the difficult economic times." | |
Lloyds had sold his loan to a US private equity group called Cerberus. The hotel's overdraft with Lloyds ended, and Cerberus does not do overdrafts. So Mr Finch had to put the hotel into administration. | Lloyds had sold his loan to a US private equity group called Cerberus. The hotel's overdraft with Lloyds ended, and Cerberus does not do overdrafts. So Mr Finch had to put the hotel into administration. |
Lloyds said Mr Finch's allegations were untrue but details could not be discussed because of legal proceedings. | Lloyds said Mr Finch's allegations were untrue but details could not be discussed because of legal proceedings. |
The hotel loan was just one of billions of pounds' worth of business loans that the bank has sold to Cerberus in the past two years. | The hotel loan was just one of billions of pounds' worth of business loans that the bank has sold to Cerberus in the past two years. |
Cerberus said Mr Finch's business was losing money and he did not present "a viable business plan". It added that it was "socially responsible" and provided "professional management". | Cerberus said Mr Finch's business was losing money and he did not present "a viable business plan". It added that it was "socially responsible" and provided "professional management". |
Lloyds said it carefully approved companies buying loans and ensured they carried on treating customers as the terms of the loan allowed. | Lloyds said it carefully approved companies buying loans and ensured they carried on treating customers as the terms of the loan allowed. |
Stephen Pegge, from Lloyds, said: "We check to make sure that these organisations are doing the job that they're asked to do and that they do behave in a responsible way." | Stephen Pegge, from Lloyds, said: "We check to make sure that these organisations are doing the job that they're asked to do and that they do behave in a responsible way." |
In a statement, the bank added: "Lloyds Banking Group refutes the BBC's suggestion that the practices of the group's Business Support Unit can, in some way, be compared to those identified in the Tomlinson report." | In a statement, the bank added: "Lloyds Banking Group refutes the BBC's suggestion that the practices of the group's Business Support Unit can, in some way, be compared to those identified in the Tomlinson report." |
Watch Panorama: Did the Bank Wreck my Business? on BBC One, 24 November at 20:30 GMT or watch later on iPlayer. | Watch Panorama: Did the Bank Wreck my Business? on BBC One, 24 November at 20:30 GMT or watch later on iPlayer. |