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Police investigating RBS for ‘loan abuse’

RBS stands accused of abusing the enterprise finance guarantee scheme

Police are investigating allegations from a small business owner that a Royal Bank of Scotland employee dishonestly transferred the lender’s liability on his company to the taxpayer.

Detectives from the financial crime unit at North Wales police visited RBS’s headquarters in London last week to look into claims from Clive May, who has accused the bank of abusing a government-backed loan scheme designed to boost lending to small companies.

The case relates to the enterprise finance guarantee, in which the government acts as guarantor on 75 per cent of the liability on individual bank loans.

The scheme is designed to help viable companies to access finance when they do not have enough security to satisfy a high street lender’s collateral demands. It has helped to facilitate £2.5 billion…

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