Businesses to launch claim against Clydesdale ‘this side of Christmas’
Clydes Bank has come a step closer to facing legal action over its alleged mis-selling of business loans.
RGL Management, which brings claims against banks on behalf of small firms, co-ordinated a meeting yesterday with companies who claim to be were victims of Clydesdale’s Tailored Business Loans (TLBs).
It said it intends to begin proceedings against the bank “this side of Christmas” and believed it had a strong legal case.
Small businesses ran into problems with its Clydesdale’s TLBs as they contained interest rate swaps, which effectively locked the business into paying a higher interest rate as interest rates fell.
“We have been working over the last year to fully investigate the strength of our claim. We know Clydesdale have a very serious case to answer and do not understand how, on the basis of the evidence we have seen, they will propose to defend this,” said Garbhan Shanks of law firm Michelmores, which is working with RGL.
Litigation finance firm Augusta Ventures is funding the case. The claimants will receive 65 per cent of any sum awarded over £375m.