Hundreds of new claimants join legal action against Clydesdale bank over loans

Another 266 small firms have signed up to the long-running legal claim against the Clydesdale and Yorkshire bank.

Holly Williams
Tuesday 28 September 2021 11:04 BST
More than 800 small businesses have now joined forces in a long-running legal fight against Clydesdale and Yorkshire Bank (PA)
More than 800 small businesses have now joined forces in a long-running legal fight against Clydesdale and Yorkshire Bank (PA) (PA Media)

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

More than 800 small businesses have now joined forces in a long-running legal fight against Clydesdale and Yorkshire bank after hundreds of new claimants have joined the claim.

Claims firm RGL Management, which is managing the legal action, said it has added another 436 claims on behalf of 266 small firms against Clydesdale, which is now part of Virgin Money and its former owner, National Australia Bank (NAB).

The latest tranche – the biggest yet in the action so far – takes the total number of claims to 1,345, representing 823 small businesses, according to RGL.

The case, which has been running since 2017, relates to fixed-rate tailored business loans that Clydesdale and Yorkshire offered to small businesses between 2001 and 2012.

There is irrefutable evidence which proves the bank’s unlawful treatment of its fixed rate loan customers and we are well on the way to securing them the compensation they deserve, which is in the hundreds of millions of pounds

James Hayward, RGL Management

RGL alleges small firms were unfairly charged high break fees when they sought to end the loans early, while it also alleges the lender “deliberately and systematically” overpriced the interest rates on the loans without first informing customers.

It said the claims are expected to amount to hundreds of millions of pounds.

RGL said it believes about 6,500 small firms were sold the loans, which could still see thousands more join the action.

James Hayward, chief executive of RGL Management, said: “With this significant new wave of claims, the largest to date, we remain supremely confident in the strength of our case.

“There is irrefutable evidence which proves the bank’s unlawful treatment of its fixed rate loan customers and we are well on the way to securing them the compensation they deserve, which is in the hundreds of millions of pounds.”

Clydesdale and Yorkshire bank group CYBG was formed in 2016 after NAB divested its UK operations and was then renamed Virgin Money after a £1.6 billion takeover of Sir Richard Branson’s banking group.

A spokesman for Virgin Money said: “There is absolutely no merit in the allegations made in RGL’s claims, which involve four live claimants.

“Their case is weak and we remain confident of defending our position.”

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in