UK group action against Clydesdale, Australia’s NAB heads to High Court

Clydesdale bank sign

Almost 370 businesses have joined a group action suing Clydesdale Bank VMUK.L and its former owner National Australia Bank NAB.AX 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.

RGL is alleging deceit, misrepresentation, breach of contract and unjust enrichment by the banks, adding that TBL borrowers “unknowingly and unnecessarily paid hundreds of millions of pounds” of additional costs and interest.

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