Clydesdale Bank faces business legal action

Legal services group RGL Management yesterday said it is to bring a claim against CYBG (Clydesdale Bank and Yorkshire Bank) on behalf of businesses who bought fixedrate business loans between 2002 and 2012.

“RGL believes that in excess of 6,000 SMES (smaller businesses) have legitimate grounds to join this action,” it said. RGL said that many SMES receiving tailored business loans from the banks, when they were owned by previous parent company National Australia Bank, lost their businesses to insolvency due to the allegedly fraudulent behaviour of Clydesdale Bank.

RGL is already involved in a £1 billion small business legal action against Royal Bank of Scotland.

A CYBG spokeswoman said: “We have not received any such claim to date from RGL Management Ltd and it is therefore not possible to comment on speculation around any potential case or the basis for any claim.”