Litigation Funder To Back Mis-Sold Loans Claim Against CYBG
London South East, 07.07.2017
CYBG PLC may face a legal claim from a number of small businesses over allegedly mis-sold loans, with backing from a litigation funder, according to Sky.
The broadcaster said Friday it has obtained a funding document showing private litigation funder Augusta Ventures has committed at least GBP2.7 million to bring a claim against FTSE 250-listed CYBG, owner of the Clydesdale and Yorkshire banking brands.
One person familiar with the claims told Sky the value of a lawsuit could be several hundred million pounds. The case is being handled by claims management company RGL, according to Sky.
The claim centres on ‘Tailored Business Loans’ which contained interest rate swaps that were allegedly not clearly explained to customers. Sky said CYBG made more than 8,000 such loans between 2001 and 2012.
The UK’s Financial Conduct Authority said last November a review set up to address failings in the way such loan were sold led to a total of GBP2.20 billion being paid out in redress.
A CYBG spokeswoman told Sky, “CYBG has no record of a TBL claim being submitted by either RGL Management or Augusta Ventures. If and when any claim is made, we will deal with it in the appropriate way”.
Shares in CYBG were down 0.1% at 282.30 pence Friday.
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