Farmers Aggressively Targeted by the Bank
- Business Bank Loan: Modified Participating Fixed Rate Tailored Business Loan (TBL)
- Bank: Clydesdale Bank
- Region: North Wales
- Business Sector: Agriculture
- Claim Amount: £540,000
- Year Loan Taken Out: 2005
“I’ve uncovered many instances where farmers were targeted aggressively and relentlessly by people they trusted at the bank. Feeling pressured to buy something, is a common thread with companies who’ve joined the Legal Group Action. The feeling of regret having bought something they didn’t want, which subsequently resulted in financial hardship has put huge mental strain on many farmers.”
Legal Researcher, allSquare
Dai Lewis was persuaded by his Relationship Manager at Clydesdale Bank to sign up for a hedging product that he didn’t really want. He felt pressurised, but believed that the specialists at the bank were acting in his best interests. When he took the fixed rate tailored business loan out in 2005 the monthly payments were manageable but when interest rates changed in 2008, the monthly costs began to increase to large amounts. Mr Lewis realised that the repayments were going to become unmanageable and tried to exit the loan. The fee for breaking the loan early was quoted at £120K.
Despite the fact that this felt like a huge amount, Mr Lewis paid to get out of the loan and then was transferred into a different product – a variable rate loan.
The financial implications of this experience were crippling. Mr Lewis heard about the group action against his bank and discovered he could claim not only for the break costs but also the difference in payments between the fixed interest and variable rates during the period before breaking the loan.
Angry about his mistreatment, and worried about the implications of Brexit on his business, he signed up to the group action in June 2020 to seek the compensation he deserves – his claim is valued at £540K.
Were you pressured into purchasing a TBL, and forced into paying a huge break fee? See if you’re eligible to join the Legal Group Action.