Business Loan Claims Explaining Tailored Business Loan & Stand Alone Hedging Product Mis-selling All Square. All Fair. January 2015 1 Tailored Business Loans and Hedging Products were sold through Yorkshire Bank and Clydesdale Bank from 2001. This guide will help you identify if your Tailored Business Loan or Hedging Product has potentially been mis-sold and whether you are able to claim compensation if it has been.
NO WIN NO FEE! * Why All Square? All Square are part of All Square Finance Limited, one of the UK s leading firms for complex Business Bank mis-selling claims. Staffed by ex-bankers, in-house banking lawyers and insolvency experts, we have built a strong track record of assisting businesses with complex issues relating to claiming for mis-sold hedging products. All Square offers a professional service for all issues relating to claiming for mis-sold Tailored Business Loans. With an estimated 11,000 Tailored Business Loans sold and a 60% complaint uphold rate, there is every chance that if you have had a Tailored Business Loan, then it will have been mis-sold to you. With our experience and team, we are confident that we can provide the best service to assist businesses with Tailored Business Loan mis-selling claims. Estimated 11,000 TAILORED BUSINESS LOANS SOLD (8,000 of these were Fixed Rate) 60% * OF COMPLAINTS ARE UPHELD 442 MILLION SET ASIDE FOR MIS-SOLD HEDGING PRODUCTS ** Please call our specialists on 0113 323 1950 to discuss how we can help. *Fee payable if case is not pursued at the client s request. *Applies to 550 complaints relating to Fixed Rate TBLs as at 17 June 2014, Source: House of Commons, Treasury Committee, Oral Evidence: SME Lending, 17 June 2014, page 29 ** Includes both Stand Alone Interest Rate Hedging Products and Tailored Business Loans, Source: http://www.nab.com.au/content/dam/nab/about-us/shareholder-centre/documents/nab-full-year-results-2014.pdf (page 95) http://www.cbonline.co.uk/resources/0d292435-09b7-4321-83f9-72179676e3cd/asx-8-oct-14.pdf 2 3
It s 2005... R Explaining Tailored Business Loan (TBL) Mis-selling I d like to grow my small business... can you lend me some money please? Then in 2009... Rates have fallen to an all time low but my repayments seem to have rocketed. I don t understand. Can I renegotiate the rate on my loan? S MALL B USINESS OWNER Yes of course. We can offer you a Modified Participating Fixed Rate Tailored Business Loan (TBL) BANK MANAGER No. You have agreed with us to have the TBL for a fixed period of time. OK, I ll just terminate the loan agreement Eh? I don t understand. I just want a simple loan. What are the terms and conditions? 4.50% AND RISING You can...but it will cost you 25% of the amount of the loan 0.5% ALL TIME LOW The TBL will protect your business from rising interest rates, it s what you need right now. Sign here...have to dash - BYE! SIGNATURE What? You never told me that! I m trapped in this TBL agreement. I can t afford the huge termination fee and the loan repayments are so high they are crippling my business! Yorkshire and Clydesdale Banks may have failed to properly explain the Tailored Business Loan including the features, benefits and risks. It s 2007... All Square may be able to help you Things seem to be going well - business is growing and I can afford my loan repayments... 5.75% We have the experience and expertise to understand Tailored Business Loans, how they work and how they were sold. We have a strong track record of assisting businesses claim for complex hedging products and loans. Call 0113 323 1950 or email claims@allsquare.co.uk 4 5
Identifying if you were mis-sold Tailored Business Loans may look simple but they are actually quite complex products whereby a commercial loan contains an embedded or hidden hedging product. The table below shows how some common Tailored Business Loans are structured: Tailored Business Loan Commercial Loan Hedging Product Fixed Rate Loan Variable Rate Swap Range Rate Loan Variable Rate Collar Modified Participating Fixed Rate Loan Variable Rate Structured Collar In order to identify if you have been affected by the mis-selling of a Tailored Business Loan, here are some key things to look for and questions to ask yourself: Did Yorkshire or Clydesdale Bank properly explain the features, benefits and risks of the Tailored Business Loan before it was sold? Did Yorkshire or Clydesdale Bank properly explain and disclose any potential break costs or termination costs of the Tailored Business Loan before it was sold? Did Yorkshire or Clydesdale Bank properly explain the features, benefits and risks of other alternative loans or hedging products? Did Yorkshire or Clydesdale Bank provide you with advice relating to the Tailored Business Loan? If you find yourself answering No to many of these questions, (and Yes to the last one) then it may be that you have a valid claim for a mis-sold Tailored Business Loan. Stand Alone Interest Rate Hedging Products Rather than combining a commercial loan and a hedging product, an alternative arrangement to a Tailored Business Loan is to purchase a Stand Alone Hedging Product which is a separate agreement to a commercial loan. Stand Alone Hedging Products may also have been mis-sold, so it may be that you will have a claim if you hold one of these products as well. Don t forget about Consequential Loss If you manage to secure compensation for a mis-sold Tailored Business Loan, then it may be that, in addition, you also have suffered Consequential Loss. Consequential Losses arise from additional charges and fees that you may have been charged by your Bank as a result of entering into the Tailored Business Loan. Consequential Loss will also cover other claims relating to loss of business opportunity. What to do next If you believe that you have been affected by any of the issues outlined in this brochure and want to take action to try to get your money back, then please call one of our specialists who will be on hand to discuss your case. For successful claims we usually charge a fee of 20%+VAT of the total settlement. We provide a No Win No Fee * service for all our claims. We are the specialists Remember, we only deal with claims for mis-sold Tailored Business Loans by Yorkshire, Clydesdale Bank and Northern Bank (Danske Bank). That s all we do, day in day out, so we know how best to successfully resolve your case. CALL TODAY! 0113 323 1950 *Fee payable if case is not pursued at the client s request. 6 7
Business Loan Claims Explaining Tailored Business Loan & Stand Alone Hedging Product Mis-selling 0113 323 1950 claims@allsquare.co.uk www.allsquare.co.uk Disclaimer This document is designed to be informative but is not intended to constitute advice, whether legal, financial or otherwise. We make no warranties or representations about any of the content (including, without limitation, the quality, accuracy, completeness or fitness for any particular purpose of such content). 8 All Square is a trading style of All Square Finance Limited. All Square Finance Limited is regulated by the Claims Management Regulator in respect of regulated claims management activities, it s registration is recorded on the website www.justice.gov.uk/claims-regulation (Authorisation No. CRM31952). All Square Finance Limited is registered in England and Wales under Co. No. 08246245. Registered office at Unit 1C, Riparian Way, The Crossings Business Park, Cross Hills, Keighley, BD20 7AA Telephone: +44 (0) 800 083 0286 Facsimile: +44 (0) 844 288 9629 VAT NO: 135536417.