Skeletons coming out of Clydesdale’s closet

Published: 16/09/2014

Clydesdale Bank is expecting to have to increase its provision to cover claims for mis sold interest rate hedging products and tailored business loans.

Last month the lender confirmed it would add ‘at least’ a further £170m as well as a further £75m for mis sold payment protection insurance claims. It also admitted that ‘the scale of future complaints over tailored business loans not covered by a regulator-mandated review was also uncertain’.

Tailored business loans were not included in the Financial Conduct Authority’s review. However Clydesdale, the most prolific lender of these loans, did undertake its own investigation into its sale practice.

Simon Cottrell comments:

“The thing with the Clydesdale ‘independent’ review is it mirrored the FCA’s review flaws and all. Similarly there was much ambiguity surrounding its process and compensation benchmarks and, as a result, we urged affected businesses to seek specialist legal representation and it just goes to show how critical that was with Clydesdale upping their provision.”

Content correct at time of publication