Clydesdale and Yorkshire Bank owner CYBG has insisted there is no case to answer over claims that nearly 2,000 small business customers were mis-sold loans.
That was the message yesterday from chief financial officer Ian Smith after the litigation firm behind a lawsuit said it had yet to receive a full public response from CYBG and its former owner, National Australia Bank, to it filing claims in the High Court on May 1.
Mr Smith, speaking after CYBG hailed its first half trading as resilient, said: “We are very comfortable we have dealt with our customers properly over the years, and we’ve made substantial remediation where required. We really don’t think there is a case to answer here.”
RGL Management, which was formed to gather claims against Royal Bank of Scotland over the conduct of its now defunct Global Restructuring Group, alleges businesses suffered losses from tailored loans sold to them by Clydesdale Bank between 2001 and 2012.
Yesterday, RGL chief executive James Hayward said: ‘We are yet to receive a full public response from CYBG and its former owner, National Australia Bank, to the claims we filed in the High Court. I look forward to hearing their explanation for what are a set of very serious allegations indeed. The bank’s singular lack of care and compassion for our claimants’ situation is unsurprising, given previous indifference to the ruinous impact of its behaviour.
“However, as we prepare to bring further waves of claims, and with more people joining the action every day, the bank would do well to realise this is not going to go away.”
RGL, which expects the legal action to result in hundreds of millions of pounds in compensation, said its list of claimants was nearly 2,000-strong and growing.
CYBG, which was catapulted into sixth place in the lending market after its Virgin Money acquisition last October, said it swung to £42 million of pre-tax profits in the six months to March 31, against losses of £95m a year earlier.
On a pro-forma basis and including the Virgin Money business dating back to October 2017, underlying pre-tax profits fell 5% to £286m, although this was better than expected.
This article was originally printed in the Aberdeen Press and Journal (16/05/2019)