Action growing

Date for CYBG loans hearing as SME claimants hit 500

Clydesdale Bank

Clydesdale Bank management denies the claims (pic: Terry Murden)

More than 500 small businesses have now joined forces in a class legal action against Clydesdale & Yorkshire Bank, now Virgin Money, as the case heads to court in December.

It revolves around what campaigners claim were mis-sold fixed interest rate loans or “Tailored Business Loans” (TBLs).

The TBLs were sold to an estimated 6,500 business customers between 2001 and 2012.

Claims firm RGL Management said another 365 small firms have joined the group action against CYBG and its former owner National Australia Bank Ltd, taking the total claimants to 509.

The legal action is now set for a case management conference on December 14 to 16.

RGL has instructed legal firm Michelmores, 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 and Craig Sandison QC. 

The case is funded by Bench Walk Advisers. After the Event (ATE) insurance is also in place, removing the adverse costs risk to claimants.

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.”

CYBG has said it will defend the action.

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