RGL Management Ltd, a firm which initiates large commercial legal actions, today confirmed that it intends to bring a claim against Clydesdale Bank and its previous parent company National Australia Bank on behalf of businesses who purchased fixed rate Tailored Business Loans between 2002 and 2012.
RGL believes that in excess of 6,000 SMEs have legitimate grounds to join this action, in respect to loans that contained emebedded or hidden swaps which RGL says were not properly disclosed.
RGL has received funding from ligitation funders Augusta Ventures Limited to prosecute this litigation and expects to issue claims this year.
Clydesdale Bank have been contact for comment.
James Hayward, CEO of RGL said:
“Clydesdale’s conduct is actionable and we’ll be suing those involved in order to recover damages for those customers it harmed. Proceedings will probably be issued later this year, however the exact timing is difficult to predict and will depend primarily on what gives us the greatest tactical advantage. Anyone wishing to join the action should get on board quickly or risk being left out.”
CYBG spokeperson said:
"Whilst we have seen reports of a potential claim being considered in relation to Tailored Business Loans, we have not received any such claim to date from RGL Management Ltd and it is therefore not possible to comment on speculation around any potential case or the basis for any claim.
"In relation to Tailored Business Loans, this is a long-standing historical matter which has been subject to significant scrutiny and which the Bank has been working through with customers as part of a wide-ranging remediation programme, in an open and transparent manner.
"We have made significant progress in resolving the vast majority of cases. Where we have reached a final agreement with customers, the cost of this has been covered by existing provisions as extensively disclosed in our financial reports."