Clydesdale customers warned of bank’s private review scheme of tailored business loans
Customers of Clydesdale Bank who have taken out a tailored business loan are being encouraged to seek legal representation after an existing client made us aware of the lender’s independent review scheme.
Tailored business loans have not been included in the FSA (now FCA) review of interest rate swaps mis selling. Despite this Clydesdale Bank, the most prolific lender of tailored business loans, has launched its own investigation into its sales practice of these products and has begun to write to clients.
While this may appear a step forward for affected business, there remains similar uncertainty surrounding the review scheme, most notably its lack of publicity. As a result, clients with a tailored business loan from Clydesdale are being urged to approach any contact from their lender with extreme caution.
“Whilst it is good to see Clydesdale attempting to make amends for its alleged mis selling of tailored business loans, it is essential clients have specialist legal representation, even if they receive a letter acknowledging potential mis selling.
“We are already aware of interest rate swap lenders disguising an official, on the record meeting as a simple fact find exercise. There is a strong possibility that this could also happen to Clydesdale customers and jeopardise their chances of recovering damages or escaping the loan.
“It is also important for clients who don’t receive a letter to understand this does not mean they are exempt from making a claim for mis selling. They too should seek legal representation.”
Tailored business loans were sold to businesses under the pretext of a simple fixed rate loan. However unlike a fixed rate loan, these products came with huge exit fees, often 50% of the total loan amount which was not highlighted to clients.
Goldsmith Williams can help clients with tailored business loans recover any break costs or, if they remain tied into the loan, help them escape without incurring the exorbitant charges.
Content correct at time of publication