Hundreds of hotel and catering businesses qualify to join a major High Court fraud claim against Clydesdale and Yorkshire Bank, according to Allsquare.
The law firm has announced the final phase of its bookbuild for the case against Clydesdale and Yorkshire Bank (now Virgin Money) and the National Australia Bank over its Tailored Business Loans (TBLs) and Fixed Rate Loans.
Analysis showed customers in the hotel and catering sector were among those particularly affected, accounting for hundreds of eligible loans, as well as businesses in the property investment, farming, construction and retail sectors.
The largest eligible businesses are now estimated to be owed millions of pounds, though average claim sizes are anticipated to be in the hundreds of thousands, with even the smallest loan sizes owed thousands of pounds.
In light of this new information, Allsquare is ramping up the final phase of its bookbuild ahead of the first court hearing in December.
The case is being pursued in the High Court in London in partnership with specialist litigation firm RGL Management and Michelmores. The group action alleges that Clydesdale Bank (including Yorkshire Bank) and the National Australia Bank behaved fraudulently and dishonestly in the sale of these loans.