McHale & Co. Solicitors Blog

Enterprise Business Loans

RBS announced on 15 January 2015 that it had reviewed a sample of its sale of Enterprise Finance Guarantee ('EFG') loans to small businesses.

EFG is a government scheme set up to assist small businesses in the aftermath of the recession. RBS has found that it has mis-sold EFG loans and is in the process of reviewing the sale of EFG loans and will contact those customers who either defaulted or suffered financial distress, following entering their EFG loan.

RBS has loaned over £900,000 to 9,000 small business' and therefore the potential detrimental effects are significant.

The 80% tax-payer backed bank has identified that it did not always adequately explain the actual liability of the consumers and their guarantor under the EFG. In other words, consumers were often unaware that it would be they who would be liable for the loan, in the event they could not repay it.

Of course, it would not be advisable to leave the decision on mis-sale and losses to the institution who mis-sold it!

At McHale & Co we have substantive experience of mis-selling in a banking context and have recovered millions of pounds for consumers who were mis-sold Payment Protection Insurance and Interest Rate Hedging Products.

So, if RBS write to you about an EBL or you were sold one and have not received a letter, please contact Paul Fitton on 0161 928 3848 or by email at

Categories: Civil Litigation

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