ROYAL Bank of Scotland is reportedly facing damages claims worth up to £100 million over new allegations senior staff drove businesses "into the wall", allowing the bank to seize assets.
Court papers will be lodged in the few months from entrepreneurs who will claim the bank structured financial contracts to run alongside business loans which had a lifespan longer than the loan. These contracts could not be broken without huge fees being incurred, and were tied into large interest fees, reports suggest.
The allegations are the latest in a series of blows which have rocked the reputation of RBS.
In January it launched a review of more than 1800 loans made through the government's Enterprise Finance Guarantee Scheme over claims they were mis-sold, while in November it was one of six banks handed massive fines for rigging the foreign exchange market.
A report for the government by Lawrence Tomlinson claimed in 2013 that the bank had used questionable property valuations to force viable companies out of business.
RBS did not respond to a request for comment.
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