Clydesdale and Yorkshire Bank Legal Group Action – Frequently Asked Questions
What is the deadline to join the Group Action?
The deadline to join is 30th April 2019.
How much will it cost me to join the Group Action?
You will at no point be asked to contribute anything to the funding of the legal action. In the event the claim is successful, either at trial or the Bank settles beforehand, you will receive a 55% share of the net settlement, increasing to 65% if the total amount recovered exceeds £375 million. If the claim is not successful, you will not pay us a penny. As each day passes, more and more businesses are signing up to the Group Action so there is every likelihood that the total claim value will exceed £375 million.
When is an outcome expected?
If the Group Action proceeds to trial, it is expected the hearing would commence in the latter part of 2020. However, it is possible that the claim may be settled at any point prior to the trail commencing.
My company has been dissolved, can I still join the Group Action?
Yes, we are still potentially able to help companies that have been dissolved, or are currently in administration. The claim lies with the legal entity, so as part of joining the Group Action you would also need to reinstate the company which the Group Action is able to do on your behalf.
It is also possible that 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, as well as the direct losses as a result of taking the Fixed Rate Business Loan. It is anticipated that some of these consequential loss claims will run into hundreds of thousands of pounds.
Will joining the Group Action adversely affect my relationship with Clydesdale or Yorkshire Bank?
Some potential claimants who are continuing to Bank with Clydesdale or Yorkshire Bank have understandably expressed concern that joining a Group Action against their bank may have a negative impact on their relationship with their bank. RGL has however discussed this issue with the All Party Parliamentary Group on Fair Business Banking (APPG). It is also a duty of a lender 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.
What is the average claim size of these types of claims?
This will depend on a number of factors such as:
- Length or term of the loan
- Whether you paid break costs on the loan
- The amount of the loan for the loan
- The rate of interest that was fixed on the loan
- Whether the business suffered any indirect (consequential) losses
Generally speaking, if successful, these claims are worth tens, if not hundreds of thousands of pounds. For some business, the claim value will run into multi-millions of pounds.
How much work is involved once I join the Group Action?
Joining the Group Action is easy. We just need you to sign and return the 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 only relates to customers of Clydesdale Bank and Yorkshire Bank. It also only relates to Fixed Rate Business Loans.
What kinds of businesses are affected?
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, dentistry, hotels, leisure centres and restaurants. However, this is not an exclusive list and if your business took out a loan with either of these banks we’d encourage you to join. We can then check if the loan you took out was a Fixed Rate Business Loan. There is no charge for this service.
If you have any further questions, call us on 0113 323 1950, email email@example.com or fill out the form below and a member of the team will be in touch.