Consequential Loss Questionnaire
The claims being pursued against both Clydesdale (including Yorkshire) Bank (“CYB”) and CYB’s former parent, National Australia Bank, involve allegations that CYB:
- unlawfully increased the interest payable (“hidden margin”) by business borrowers when fixing the rate charged under commercial loans; and
- unlawfully imposed charges (“break charges”) on its fixed rate business loan customers, when a business sought to vary the loan by ending it or varying the loan amount or the interest rate charged.
Due to the conduct of CYB (and NAB’s involvement in this conduct) in relation to these fixed rate business loans – known as “Tailored Business Loans” or “TBLs” – your business will have suffered certain types of losses that lawyers call “direct losses”. For example, the business will have paid additional amounts of interest due to the hidden margin and/or break costs demanded by the banks or any additional interest paid due to being “trapped” in a fixed rate loan because the business could not pay the break costs.
As part of the ongoing Court action, these direct losses are already being analysed and calculated by the legal team, working with a loss quantum expert and utilising the information you have already supplied.
However, there may be other types of losses that your business suffered as a result or consequence of incurring the direct losses, i.e. having to pay additional interest or break costs may have had a prejudicial commercial impact on the business beyond just having to pay these amounts. These other types of losses are known as “consequential losses”.
The purpose of this questionnaire is to gain sufficient information from you to enable the legal team and the loss experts to start the process of considering what consequential losses (if any) your business suffered and the quantum, such that any such amounts can be included in the ongoing legal claims.
However, before responding to the following questions relating to potential consequential losses, it is very important to note that such losses must have been incurred as a result of the direct losses suffered by the business caused by the banks and/or being “trapped” in a fixed rate loan.
In other words, losses that were incurred, when strictly viewed, by reason of the wider financial crisis at the time, or a weakness of the business generally, or some event unconnected to the banks that damaged the business, will not be recoverable in the legal proceedings, regardless of the banks’ conduct.
Please note: This questionnaire needs to be completed in one sitting; it cannot be saved part way through for completion at a later date. However, while completing it, you can go back to correct or add to previous sections. You may wish to glance through the questions in advance in order to understand what is required.
When you reach the end, it is essential that you click the button which reads ”Submit”, and tick the “Captcha box” that will appear to prove the answers have not been provided by automated SPAM software.
Please answer all questions that apply to your business.
We will immediately email to you a copy of your responses, for your records