Bank claim

Hundreds of claimants join Clydesdale action

Clydesdale Bank

Clydesdale Bank owner Virgin Money denies the claims

Hundreds more claims have been added to a long-running legal action by campaigners who allege that business customers of Clydesdale Bank unnecessarily paid millions of pounds in fees and interest.

RGL Management (RGL) said 436 claims on behalf of more than 250 SME customers have been filed against Clydesdale Bank and Yorkshire Bank – now part of Virgin Money – and their former owner National Australia Bank.

The claims arise out of fixed interest rate loans or “tailored business loans” (TBLs) sold to business customers between 2001 and 2012. Virgin Money has vehemently denied any wrongdoing and has said it is “confident of defending our position.”

The claim form, filed in the Chancery Division of the High Court, builds on the previous claims issued in May 2019 and October 2020 taking total number of claims in the group action to 1,345 representing 823 SMEs. 

A copy of the claim form has been sent to the defendants’ solicitors, DLA Piper and Herbert Smith Freehills.

The allegations against Glasgow-based Clydesdale and NAB relate to the banks’ 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 allege that the banks falsely and unlawfully demanded break costs from borrowers who sought to terminate fixed rate business loans early, as well as that the banks deliberately and systemically inflated the fixed interest rate payable without first informing customers. 

As a result, all fixed interest rate TBL borrowers allegedly have unknowingly and unnecessarily paid hundreds of millions of pounds of additional costs and interest, all of which was directed at and went to increase the banks’ profits. 

A second case management conference (CMC), presided over by Mr Justice Zacaroli, has been scheduled for next month. 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.

While it is not yet possible to quantify the exact value of each claim, today the case against Clydesdale and NAB has increased by over 30%, and losses from the combined TBL related claims are expected to amount to hundreds of millions of pounds. 

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