Legal action against Clydesdale Bank over tailored business loans commences at English High Court
Legal action has been commenced against Clydesdale Bank plc(Clydesdale) and its former owner National Australia Bank Limited (NAB) for conduct in relation to its Tailored Business Loans (TBLs).
RGL Management Ltd’s (RGL) claim group consists of almost 2,000 claimants from England, Scotland and Wales, and is growing.
The group includes a number of companies driven into insolvency.
Today, the first claims were issued in the Chancery Division of the High Court of England and Wales, representing 148 claimants in total.
RGL has instructed English solicitors, Michelmores LLP, led by partner, Garbhan Shanks, with specialist banking counsel, Andrew Onslow QC and Lisa Lacob.
In Scotland, RGL has instructed Cat MacLean, partner and head of dispute resolution of MBM Commercial LLP and Craig Sandison QC, of Ampersand Advocates.
The particulars of the claim relate to the deliberate or reckless misrepresentation of a contractual ability by the banks to charge a break cost upon the early termination of a loan, to which they were not entitled; and the deliberate addition of hidden margins into interest charges on fixed rate loans.
The case is being funded by the UK’s largest litigation funder, Augusta Ventures.
James Hayward, CEO, RGL Management said: “Clydesdale’s conduct towards its customers has been utterly disgraceful. We are pleased to be launching this action today to recover the hundreds of millions of pounds in losses owed to claimants.”
He added: “This is just the beginning. With a claim group in the thousands and growing, the bank will find itself facing successive waves of claims.”