A CLASS action against Clydesdale Bank – now part of Virgin Money – and its former owner National Australia Bank (NAB) has extended to more than 1,300 plaintiffs representing 823 small and medium-sized enterprises (SMEs).
RGM Management announced yesterday that 430 more claims on behalf of 266 SMEs have been filed with the Chancellery Division of the High Court, based on previous submissions from May 2019 and last October.
Receivables arise from fixed interest rate loans or tailor-made commercial loans (TBL) sold to professional clients between 2001 and 2012.
READ MORE: ‘Institutional dishonesty’: Clydesdale bank lawsuit enters final stages
The allegations against Clydesdale and NAB include allegations of deception, misrepresentation and breach of contract regarding the TBLs.
It is alleged that banks falsely and illegally charged termination fees to borrowers who sought to terminate fixed rate commercial loans prematurely, as well as deliberately inflating the fixed interest rate payable without first notifying customers.
As a result, RGL said all TBL fixed rate borrowers would unwittingly and unnecessarily pay hundreds of millions of pounds in additional fees and interest, all of which went to bank profits.
A second Case Management Conference (CMC), before Judge Zacaroli, is scheduled for next month.
RGL continues to process and verify additional claims from across Scotland, England and Wales, and has said it intends to initiate further proceedings in the coming months. In Scotland, she appointed Cat MacLean, partner and head of dispute resolution, of the law firm MBM Commercial LLP.
James Hayward, CEO of RGL Management, said: âWith this significant new wave of complaints, the largest to date, we remain extremely confident in the strength of our case.
âThere is compelling evidence to prove the bank’s illegal treatment of its fixed rate loan customers and we are on the right track to guaranteeing them the compensation they deserve, which runs into the hundreds of millions of pounds. There are thousands of former Clydesdale and Yorkshire Bank business loan customers who have yet to claim.
“With another High Court hearing scheduled for next month, we are making a final push in our book-making efforts to reach out to all who have yet to join.”