Rossbank have accused Kensington of failing to respond to a deadline to return to the negotiating table. Rossbank suggested that the Kensington board could not be happy with the way the matter was being dealt with, an allegation swiftly denied by the Kensington board.
The original dispute centres around Kensington’s decision to bring its processing in house, thereby terminating a five-year contract with Rossbank.
Kieran Hedigan, CEO of Rossbank, said: “Kensington responded to our ultimatum by informing us that all future correspondence was to be via their lawyers. We too have instructed lawyers but remain prepared to talk to KMC and settle this amicably.”
Hedigan went on to confirm that Kensington had informed the FSA over the dispute, in what he interpreted as a defensive gesture.
Kensington said that no legal proceedings had been launched against Rossbank and that it informed the regulator of all major changes to its operations.
Laura Mackendrick, public relations and communications manager for Kensington Mortgages, said: “Kensington still considers itself to be bound by a duty of confidentiality as regards to Rossbank. The board is supportive of the actions of KMC in this matter.”
Hedigan responded: “Is this the same support they gave Rob Bier [former Kensington managing director] shortly before his disappearance? As far as we are concerned we have a valid contract with Kensington, which we expect them to honour.”
