$69 non-ATF Mobile

A lawsuit has been filed against Clydesdale Bank and its former owner, National Australia Bank (ASX: NAB), for conduct in relation to its Tailored Business Loans (TBLs) which were marketed by the Bank to its customers.

The case has been filed on behalf of former SME customers of Clydesdale who suffered losses as a result of entering into TBLs by RGL Management, a company which initiates, builds, and prosecutes large, complex, commercial legal actions,

RGL is going to pursue damages for all losses incurred as a result of the Bank’s actionable behavior and according to its legal team, even those businesses which have already received some sort of compensation payment will be entitled to claim damages for a full recovery of losses. Even the businesses which have been put into liquidation or dissolved can claim damages.

Recently while providing its half-year results, NAB informed that RGL Management Limited (a claims management company) has threatened to bring a claim against CYBG and NAB on behalf of customers of CYBG (a group action). In December 2017, NAB received a letter before action from solicitors acting for RGL Management. In the letter, RGL had made allegations against NAB and CYBG in relation to the sale of fixed rate tailored business loans to customers of CYBG during the period from 2001 to 2012.

As per NAB’s announcement, the claim has not been clearly articulated and the claimants have not been clearly identified. The potential outcome and total costs associated with any proceedings which may arise remain uncertain. In prior periods, NAB had suffered losses in certain UK customer-related remediation matters.

This law suit is certainly not good for the NAB’s reputation. Interestingly NAB recently lodged its “Luxembourg Transparency Law – 2019 Half Year Financial Report” in which it noted that a reputational damage may adversely impact the Group's ability to attract and retain customers or employees in the short and long-term and the ability to pursue new business opportunities. The reputation damage may result in a higher risk premium being applied to the Group and impact the cost of funding the Group's operations or its financial condition. These impacts may affect the viability of some or all of the Group's business activities.

NAB’s stock traded at a price of $25.670, down by 0.117% during the day’s trade with a market capitalisation of ~$72.25 billion as on 3 May 2019. The counter opened the day at $25.600 and reached the day’s high of $25.785 and touched a day’s low of $25.510 with a daily volume of ~5,747,974. The stock has provided a year till date return of 9.10% & also posted returns of 1.70%, 8.36% & 1.70% over the past six months, three & one-month period respectively. It had a 52-week high price of $29.640 and touched 52 weeks low of $22.520, with an average volume of ~ 6,262,676.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above article is sponsored but NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) under discussion. We are neither licensed nor qualified to provide investment advice through this platform.

Gold MTF non-AMP

 

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK