SCOTTISH-based bank CYBG is a step nearer to being faced with court action over a long-running loans dispute after RGL Management Limited (RGL) announced yesterday that it had brought allSquare Finance Limited into the case.
RGL said allSquare is to use its specialist knowledge in bringing claims against banks, and to bring hundreds more claimants to join the action against Clydesdale Bank – part of CYBG – and its owners the National Australia Bank (NAB).
RGL announced in July 2017 that it had raised funding from Augusta Ventures to bring a claim against Clydesdale and NAB with respect to their tailored business loans which many small to medium enterprises (SMEs) claim defrauded them.
The SME claimant group will shortly exceed 500 members, RGL said. More than 550 further potential SME claimants introduced by allSquare are also being processed.
RGL stated: “Each day, more and more businesses are rushing to join the action before it is brought to court. The claim is expected to bring hundreds of millions of pounds in compensation.”
Daniel Hall, managing director of allSquare said: “By joining with RGL’s action, we are extremely pleased to be able to offer a cost-effective route to compensation for not only our clients but also for the many other affected businesses up and down the UK. The combined claim will be significant and RGL’s expertise, legal team and funding will ensure that we have the best possible chances of success.”
James Hayward, CEO of RGL Management stated: “Clydesdale and NAB now have a bigger, stronger and more determined group to face. Our case is strong and we will issue proceedings in due course.”
CYBG told The National it does not consider the new alliance to be a development in the case.
Asking people who think they have a problem with the bank to contact them directly, a CYBG spokesman reiterated the group’s stance as laid out last December: “The Bank has dedicated substantial effort in recent years working through this historic conduct matter, engaging openly and transparently with customers as part of a wide-ranging remediation programme.
“We have made significant progress in resolving the vast majority of cases.”
He added: “The allegations contained within the letter are not accepted by the bank.”
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