allSquare reclaim £140,000 for West London Hotel
Mis-sold Financial Product: Participating Fixed Rate Tailored Business Loan
Bank: Clydesdale Bank
Business sector: Hospitality
Appeal outcome: Mis-sold with cap as an alternative to IRHP
Appeal time: 15 months*
Claim outcome: Basic Redress: £140,000
Consequential Loss: To be identified
Total Claim: £140,000+
After being sold a Tailored Business Loan (TBL) by a broker commissioned by Clydesdale Bank in 2005, our client, a leading hotel operating in the UK, approached allSquare for help.
Our client had very little, if any direct contact with the bank which made them feel wary and dissatisfied with the sales process of the TBL.
After a thorough review of our client’s case, allSquare was able to determine that the hedging product sold was a ‘Category A’ product, or Structured Collar. These hedging products have been deemed by the Financial Conduct Authority (FCA) to be wholly inappropriate and unsuitable to be sold any Small and Medium Sized Enterprise (SMEs). Clydesdale Bank was therefore forced to include them in a review process that mirrors the FCA Review.
We attended the testimony meeting with Clydesdale Bank alongside our clients. The meeting was followed up with a comprehensive set of written submissions, put together by our specialist team of ex-bankers and lawyers.
After several months within the mirror review, Clydesdale Bank accepted that the TBL had indeed been mis-sold and that a full refund of payments was merited. This was to the sum of £140,000+.
The case doesn’t end there. allSquare’s forensic accountant is now assessing whether there is a potential Consequential Loss claim to pursue to ensure our client receives every penny they are owed.