A CLAIMS management company has announced the final phase of its group (or class) action against Clydesdale Bank, including Yorkshire Bank and the National Australia Bank, over their selling of tailored business loans (TBLs) and fixed rate loans.
All Square Finance said yesterday that new data had identified which business types and sectors are particularly affected from the thousands who took out the loans.
They said their analysis showed these included customers involved in the property investment, hospitality, farming, construction, retail and manufacturing sectors.
Their action is due to be heard at the High Court in London next month, in partnership with specialist litigation firm RGL Management and Michelmores LLP.
All Square – which has opened the case on a no-win-no-fee basis – said the largest eligible businesses are now estimated to be owed millions of pounds by the bank, although it anticipated average claim sizes in the hundreds of thousands bracket.
The company alleges that the banks behaved fraudulently and dishonestly in the sale of these loans, and said many thousands of customers may still be unaware that they have a valid claim.
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Anybody in Scotland, Wales or England who took out a TBL or fixed rate loan from Clydesdale Bank or Yorkshire Bank is eligible to sign up for this group action claim.
It is believed that more than 6500 business customers took out such loans from Clydesdale Bank between December 2001 and July 2012.
However, All Square said that with the hearing due next month, time was running out for potentially thousands of businesses to join the action.
The firm’s managing director, Daniel Hall, said: “Clydesdale and Yorkshire Bank’s institutional dishonesty when selling TBLs led to the destruction of countless lives and livelihoods – but any customer who was sold a fixed rate business loan or TBL is eligible to join this compensation claim, which is expected to run into the hundreds of millions of pounds.
“In the current business climate, we are particularly keen to reach people facing difficult circumstances who may not realise they are owed thousands, and in many cases six or seven figures, by the bank.
“The data we have analysed today allows us to reach out to those sectors that we know were particularly affected and bring this to their attention.”
A spokesperson for Clydesdale Bank said: “There continues to be absolutely no substance or merit in the allegations made in RGL’s claim and we have made this clear in our defence.
"Over recent years we have worked hard to investigate all historic SME conduct issues and we are confident we have done the right thing for those customers involved. We will continue to defend our position robustly throughout any legal process.”
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