Clydesdale Bank did not charge unfair fees to small firms, court rules (updated)

Virgin Money UK

19/03/2024 10:27

(Adds comment from Clydesdale paragraph 5)
       LONDON, March 19 (Reuters) - Clydesdale Bank and its
former owner, National Australia Bank (NAB)  NAB.AX , did not
charge unfair break fees on loans sold to small businesses up to
two decades ago, London's High Court ruled on Tuesday.
    The case was brought by four businesses against NAB and
Clydesdale Bank - now part of Virgin Money UK Plc  VMUK.L  - in
an attempt to establish liability in the dispute. More than 900
other small firms were waiting in the wings. 
    The firms, represented by claims management company RGL
Management, were seeking restitution for alleged unjust
enrichment by the banks and breach of contract over fixed rate
Tailored Business Loans (TBLs) bought between 2002 and 2010.
    But in a brief hearing, following a 12-week case last year,
the judge found that all claims had failed.
        "We are pleased with today’s judgment in favour of
Clydesdale Bank ... about historic tailored business loans,"
said a spokesperson for Clydesdale Bank.
  
        NAB and RGL did not immediately respond to a request for
comment. 
  
        
  

 (Reporting by Kirstin Ridley, Editing by Louise Heavens)
 ((kirstin.ridley@thomsonreuters.com; +44 (0) 207 513 5666;))