• Text size      
  • Send this article to a friend
  • Print this article

Customers launch campaign over loan products

Scottish businesses pushed to the brink by what they claim were mis-sold loan hedging products kicked off a nationwide campaign for redress yesterday.

The NAB Customer Support Group handed cards to bank employees outside the headquarters of Clydesdale Bank in Glasgow and are to target branches in Edinburgh, Dundee and London.

The small business owners say they are at breaking point after being advised by banks, principally the Clydesdale, to enter into long-term fixed-rate loans containing embedded interest rate swaps with huge hidden breakage fees.

The Clydesdale has insisted its fixed-rate loans are not derivatives and will not be reviewed, though it has agreed to review sales of some other swap-related loans.

The Financial Services Authority has no power to regulate loans. Derivatives experts, however, have identified the Clydesdale fixed-rate loans as containing swaps.

Now Jim McGrory, a St Andrews hotelier and member of the support group, has been told by the Financial Ombudsman Service that his Clydesdale fixed-rate loan "appears to have some similar features to a hedging product".

The bank however has told the hotelier's MSP, Roderick Campbell, that Mr McGrory's product was "a simple fixed-rate loan that does not contain a derivative".

Contextual targeting label: 
Finance

Commenting & Moderation

We moderate all comments on HeraldScotland on either a pre-moderated or post-moderated basis.
If you're a relatively new user then your comments will be reviewed before publication and if we know you well and trust you then your comments will be subject to moderation only if other users or the moderators believe you've broken the rules

Moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours. Please be patient if your posts are not approved instantly.

130576