SMEs join legal action against Clydesdale and National Australia Bank over TBLs
Over 500 SMEs have joined action against Clydesdale Bank and National Australia Bank (NAB) as RGL Management Limited (RGL) issues a third wave of High Court claims over the banks’ tailored business loans.
RGL yesterday filed a further tranche of claims in the ongoing group action against Clydesdale Bank plc including Yorkshire Bank, now part of Virgin Money UK plc, and its former owner, National Australia Bank Limited, arising out of fixed interest rate loans or tailored business loans (TBLs) sold to business customers between 2001 and 2012.
The claim form was filed in the Chancery Division of the High Court on behalf of a further 365 SMEs representing 609 individual loans.
This builds on the two previous claim forms issued in May 2019, and brings the total number of SMEs in the RGL group action to 509, representing 867 individual loans. A copy of this most recent claim form has been sent to the Defendants’ respective solicitors.
The allegations against Clydesdale and NAB relate to their conduct in respect of fixed interest rate TBLs and give rise to claims in deceit, misrepresentation, negligent misstatement, breach of contract and unjust enrichment.
More specifically, the claims arise out of allegations the banks falsely and unlawfully demanded break costs from borrowers who sought to terminate fixed rate business loans early.
A case management conference (CMC) has now been scheduled for 14-16 December 2020. In the meantime, RGL continues to process and verify additional claims from across England, Scotland and Wales and intends to issue further proceedings in the coming months.
RGL has instructed 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 at MBM Commercial and Craig Sandison QC.
James Hayward, CEO, RGL Management, said: “With the first court date now on the horizon, we are more confident than ever of securing the hundreds of millions of pounds in compensation owed to Clydesdale and Yorkshire Bank customers. There is an overwhelming body of evidence to prove the banks’ unlawful treatment of their fixed rate loan business customers. RGL is now redoubling its book building efforts to ensure as many borrowers as possible receive the compensation they deserve. Further claim forms will be issued as soon as they are ready.
“There are still thousands of former Clydesdale and Yorkshire Bank business loan customers who have claims but are yet to join the RGL group action. Time is running out. We urge anybody who thinks their business might have been sold a fixed interest rate Tailored Business Loan by either bank to get in touch immediately.”