Almost 370 businesses have joined a group action suing Clydesdale Bank and its former owner National Australia Bank in a dispute over small business loans that is set for its first day in London’s High Court in December.
The group, which alleges businesses were deceived between 2001 and 2012 when buying fixed rate Tailored Business Loans (TBLs), has snowballed since last year’s launch and now represents 509 smaller businesses and 867 individual loans, according to claims management company RGL Management.
RGL, which filed the latest tranche of claims on Thursday, alleges smaller businesses were wrongly told they faced hefty costs for terminating fixed-rate TBL loans early and that banks inflated interest rates without first informing customers.
RGL is alleging deceit, misrepresentation, breach of contract and unjust enrichment by the banks. It has not put a value to the legal claim.