Mis-sold business loans

[anonymous-user]

What's the deal with these, are they legitimate cases or is it the new PPI bandwagon? Clydesdale in particular seem to be getting some stick with a big class action and this guy camping out, and other banks seem to have had headlines about it.

[So]

ScotHill said:

What's the deal with these, are they legitimate cases or is it the new PPI bandwagon? Clydesdale in particular seem to be getting some stick with a big class action and this guy camping out, and other banks seem to have had headlines about it.

We were customers of Yorkshire Bank around that time. I would say that there are probably many legitimate cases out there.

YB wanted its money back, despite us being within covenant and with 18 months to go on the loan, because the bank was for sale. Their message was basically, "give us back the money immediately or we will bankrupt you". We decided not to return their money.

It all got rather unpleasant and we had to be quite tenacious with them to stop them doing some quite underhand things. Our MP was very good and put pressure on them; they backed off.

We refinanced and moved when the facility was due to be repaid.

At the time it all kicked off, we wanted to stay with the bank - as some accounts were being allowed to do. However, in hindsight we may have been the lucky ones because we were able to go elsewhere.

[DonkeyApple]

It’s all a mess from that era. Old building societies and very weak banks trying to compete by selling too much debt at too cheap a price. Some of their clients weee just piss takers, living the millionaire dream on money they borrowed for a business but spent on helipcopters, race cars, overseas homes etc etc essentially just liberally embezzling and then blubbing when the party ended and the banks wanted their money back. Other clients ran solid businesses that these troubled lenders saw as targets to tap for cash to keep themselves afloat.

For each legitimate client who was screwed at a very strange moment in history there are several who leapt at the lax and cheap lending and pissed the money away on helicopter lifestyles and can get stuffed. Sorting the wheat from the chaff would be somewhat difficult and I doubt any ambulance chasers are going to invest in trying to do so.

[So]

DonkeyApple said:

It’s all a mess from that era. Old building societies and very weak banks trying to compete by selling too much debt at too cheap a price. Some of their clients weee just piss takers, living the millionaire dream on money they borrowed for a business but spent on helipcopters, race cars, overseas homes etc etc essentially just liberally embezzling and then blubbing when the party ended and the banks wanted their money back. Other clients ran solid businesses that these troubled lenders saw as targets to tap for cash to keep themselves afloat.

For each legitimate client who was screwed at a very strange moment in history there are several who leapt at the lax and cheap lending and pissed the money away on helicopter lifestyles and can get stuffed. Sorting the wheat from the chaff would be somewhat difficult and I doubt any ambulance chasers are going to invest in trying to do so.

I wouldn't disagree with you. Also, the claimants are probably less malleable and fewer in number than the PPI retail credit lot.

But I would be unsurprised to learn that the bank had settled with a number of ex-customers. I doubt it will ever come to light though.