Read the Frequently Asked Questions about the Clydesdale and Yorkshire Bank Legal Group Action
Take a look at our Frequently Asked Questions and find out all of the information you need about the Group Action. If you would like any further information, call us on 0113 323 1950.
What is a Group Action?
A group action is a way for a number of individual claimants to club together to take on a common problem. They allow claimants to share costs and legal knowledge rather than taking on full responsibility for litigation. It is a way to redress the legal balance and allow individuals lower-risk access to justice that might otherwise be denied. Taking on the banks as an individual can be time-consuming and expensive, hence the rise in group litigation. While this type of action is more commonly known as a class action, this is in fact the American term and there are slight differences to the process.
Group litigation can seem like a complicated idea so we’ve pulled together some further information. Click here to read more about group actions and how they work.
Why are you bringing a Group Action against Clydesdale and Yorkshire Bank?
It is alleged that Clydesdale and Yorkshire Bank fraudulently and dishonestly provided Fixed Rate and Tailored Business Loans to thousands of companies across the UK. We, alongside RGL Management and Michelmores LLP, are bringing a group action to help businesses get the justice they deserve.
When is the deadline to join the Group Action?
The first claim form has been submitted but there’s still time to sign up. The court could impose a deadline at any point so if you’re interested in joining, don’t delay or you may miss out. If you would like to join the Group Action, you can do so online or call us on 0113 323 1950 and we’ll send a Claims Management Agreement to you via email or post.
What are the fees?
The Group Action is strictly no win, no fee. In the event the claim is successful, you will receive a 55% share of the net settlement. You will, however, receive 65% if the total amount recovered exceeds £375 million. If the claim is not successful, you will not pay us a penny. As more businesses sign up, the likelihood that the total claim value will exceed £375 million increases. So far, almost 2,000 businesses have already signed up and more are joining every day.
When do you expect an outcome?
If we proceed to trial, we expect the hearing will commence in the latter part of 2020. However, it is possible that the claim may be settled at any point prior to the trial commencing. The first claim form was submitted on 2nd May 2019 and we expect the bank to present its first defence at the end of July.
Can I join the Group Action if my company has been dissolved?
Yes, we will still potentially be able to help companies that have been dissolved, or are currently in administration. The claim lies with the legal entity, so you will therefore need to reinstate the company if you wish to join. We can do this on your behalf.
If you have dissolved your company and you would like to join, please complete the Dissolved Company CMA or call us on 0113 323 1950 so we can send the relevant pack out to you. It only takes a couple of minutes to sign up.
If it can be identified that the actions of Clydesdale or Yorkshire Bank caused the business to file for bankruptcy, then a significant consequential loss claim may be possible, alongside the direct losses as a result of taking the Fixed Rate Business Loan. We anticipate that some of these consequential loss claims could run into hundreds of thousands of pounds.
Will joining the Group Action adversely affect my relationship with Clydesdale or Yorkshire Bank?
We know that some potential claimants who are continuing to bank with Clydesdale or Yorkshire Bank have concerns that joining a Group Action against their bank may have a negative impact on their relationship. RGL has discussed this issue with the All Party Parliamentary Group on Fair Business Banking (APPG). The lender has a duty to treat customers fairly, and it would be a serious breach of this requirement if they were to treat a customer differently if they have raised a legitimate grievance. If you have any concerns, RGL has pulled together a recommended course of action.
What will the average claim size be?
Each individual claim will be different. The amount will depend on a number of factors such as:
- The length or term of the loan
- Whether you paid break costs on the loan
- The amount you borrowed
- The rate of interest that was fixed
- Whether the business suffered any indirect (consequential) losses such as bankruptcy
Generally speaking, we expect that if successful, these claims could be worth tens, if not hundreds of thousands of pounds. It is possible that some claims could run into multi-millions.
How much work is involved once I join the Group Action?
It’s easy to join the Group Action. You just need to sign and return a Claims Management Agreement (CMA). Once we receive this, we will undertake a quick check to make sure that you have a Fixed Rate Business Loan (it needs to be fixed or the interest needs to be structured in some way). At a later point in time, we will need to assess your ‘Particulars of Claim’ to be included on the claim form, but generally we will keep your involvement to the minimum possible.
Is the Group Action available for other banking products?
No. The Group Action specifically relates to Fixed Rate Business Loans from Clydesdale and Yorkshire Bank. We are particularly looking for businesses that had Tailored Business Loans (TBLs). If you’re unsure of the lending type, we can check this for you once you sign up to the Group Action.
I don’t think I have any documentation – can I still sign up?
We know that claimants will each have different levels of documentation available to them. Original loan paperwork is useful but not essential for us to take your claim forward. If you can’t find any paperwork relating to your loan, don’t worry. Once you sign the CMA, we’ll approach the bank on your behalf and find out if you have a relevant product. If you find documentation, please forward it on to us at firstname.lastname@example.org.
What kind of documentation do you want?
Any documentation relating to the loan could be useful but particularly:
- Facility letters
- Loan agreement letters
- Bank statements (if they include the loan reference number)
What kinds of businesses are affected?
The Group Action relates to any business that took out a Fixed Rate Business Loan with Clydesdale or Yorkshire Bank.
We know that these loans were sold widely across a number of sectors, including:
- farming and agriculture
- property development
It is important to note, however, this is not an exclusive list so if your business took out a loan with either of these banks we’d encourage you to join. We can then check if your loan was a Fixed Rate Business Loan. We won’t charge you for this service as it is strictly no win, no fee. It only takes a couple of minutes to join – you just need to sign a CMA and return it to us.
Do you want to know more? We’re here to help. Call us on 0113 323 1950, email email@example.com or fill out the form below so that a member of the team can get in touch. We will talk you through the process and answer any questions you may have.