Class action lawyers circle over fixed-rate loans
National Australia Bank, along with another financial institution, is facing an international class-action lawsuit over fixed-rate loans.
Farmers could claim thousands of dollars in a class-action case against the banks, according to a report by Farmers Guardian. All Square Finance, a claims-management and litigation company, is calling on farmers who have taken out tailored business loans (TBL) and fixed-rate loans to come forward before the first hearing in December.
The case is being pursued in London’s High Court, according to Farmers Guardian. All Square Finance is partnering with specialist litigation firm RGL Management and Michelmores on the case.
Read more: Shock as NAB shutters 600 locations
The class action alleges that NAB and the UK’s Clydesdale and Yorkshire Bank behaved dishonestly and fraudulently in the sale of TBLs and fixed-rate loans. All Square Finance said its analysis found that those in the farming sector were particularly affected by the alleged behavior.
All Square said that while average claim sizes in the case were estimated to be in the hundreds of thousands of pounds, the largest affected businesses could be owed millions.
Daniel Hall, managing director at All Square Finance, said that eligible claimants were running out of time to sign up.
“Any customer who was sold a fixed-rate business loan or TBL is eligible to join this compensation claim, which is expected to run into the hundreds of millions of pounds,” Hall told Farmers Guardian. “In the current business climate, we are particularly keen to reach people facing difficult circumstances who may not realise they are owed thousands, and in many cases six or seven figures, by the bank.”
A spokesperson for Virgin Money UK, Clydesdale’s parent company, said the case was without substance or merit. The spokesperson said that the bank worked hard to investigate all historic SME conduct issues, “and we are confident we have done the right thing for those customers involved.”
