শনিবার, ১২ জানুয়ারী, ২০১৩

Watchdog Warns RBS Over its Pursuit of Debt from Struggling Borrowers -Report

Competition authorities have warned that under new rules, Royal Bank of Scotland Group PLC (RBS, RBS.LN) could face fines for its "disproportionate" pursuit of small, unsecured debts by seeking the first cut of struggling borrowers' home sales, The Times in London reported Saturday citing the watchdog and the bank.

The Office of Fair Trading said that it had imposed new rules restricting the use of charging orders by the bank after an investigation revealed that they had been used excessively in the years before the credit crunch.

RBS, which is majority-owned by the taxpayer, could be fined up to GBP50,000 ($80,697) each time it breaches the new rules. "Lenders are entitled to use charging orders, but they must do so proportionately and not to secure relatively small amounts of debt," said David Fisher, the director of consumer credit at the OFT. "Where we consider the use of charging orders to be unfair or oppressive, we will take action to protect consumers."

RBS said that it was already abiding by the guidelines and didn't accept that it had used charging orders excessively. It pointed out that the OFT had not asked it to provide redress to any customers, The Times said.

RBS said that the OFT review of the bank related to 15 cases from 2007 to 2008 and that it had changed the criteria for its use of charging orders as a result of customers finding themselves in more difficult financial circumstances.

Newspaper Web site: http://www.timesonline.co.uk

-London Bureau, Dow Jones Newswires; +44 (0)20 7842 9269

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Copyright ? 2013 Dow Jones Newswires

Source: http://feeds.foxbusiness.com/~r/foxbusiness/markets/~3/TxGFkCFDdtI/

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