Farmers ready for High Court hearing on fixed rate loans


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The farmers and their suppliers are included in a collective complaint alleging that Clydesdale Bank and Yorkshire Bank acted illegally in connection with fixed rate or bespoke commercial loans sold between 2001 and 2012.

The class action is brought by litigation specialist RGL Management, with the allegations against Clydesdale and its former owner National Australia Bank, including deception, misrepresentation, negligent misrepresentation, breach of contract and unrequited enrichment. cause.

A High Court case management hearing has been set for December 14-16, during which four sample cases will be reviewed. These include a dairy farmer, a cattle and pig farmer, and a machinery dealer.

See also: What the business interruption test case means for policyholders

Litigation firm RGL Management is working with law firm Michelmores and inviting other borrowers to join the action at no cost and cost, as many other types of loans have been taken out.

An important aspect of claims concerns the breakage fees that borrowers had to pay when they wanted to prematurely terminate fixed rate commercial loans.

Some borrowers had to pay hundreds of thousands of pounds to get out of the agreements which would have put them in financial difficulty, as did the continuation of loans in some cases.

Hundreds of applicants

The latest application follows others issued in May last year and is expected to bring the total number of applicants to 509 and the number of affected loans to 867.

Garbhan Shanks, partner at law firm Michelmores, acts with RGL in the group claim for English and Welsh borrowers, while Cat MacLean, partner and head of dispute resolution at MBM Commercial, leads for Scottish clients.

Mr Shanks told Farmers Weekly there were three elements to the claim, involving the cost of breaking the loans, the fixed rates used and an unfair relationship aspect given the small and medium businesses involved.

Clydesdale Response

A spokesperson for Clydesdale Bank said: “There is still absolutely no substance or basis in the allegations made in RGL’s claim and we have made that clear in our defense.

“Over the past few years, we have worked hard to investigate all historical SME conduct issues and are confident that we have done the right thing for affected customers. We will continue to firmly defend our position throughout any legal process. “

RGL is using claims management company allSquare to recruit more borrowers for the class action, which is supported by a third party litigation funder who will take a share of any payment if the case is successful.

The members of the class action are protected by insurance against the costs associated with the loss of the case.

Clydesdale Bank and Yorkshire Bank are now part of Virgin Money UK and previously owned by National Australia Bank, also named in the case.

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About Brandon A. Hood

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