Royal Bank of Scotland has admitted it mis-sold £900m of loans to 9,000 small business customers following complaints that the scheme was not properly explained to borrowers.
The loans were made under the taxpayer-backed scheme, the Enterprise Finance Guarantee (EFG). It was set up in 2009 to help businesses who would otherwise find it difficult to find credit. RBS - 80%-owned by the taxpayer - is the biggest user of the scheme. Complaints from customers resulted in discussions with the British Business Bank, which oversees the scheme.....Read more here