NAB Yorkshire Clydesdale Bank Tailored Business Loans Fixed Rate Loans Statements

Did NAB Owned Yorkshire / Clydesdale Bank Fail to Keep to Their Promises in Respect of Tailored Business Loans – Fixed Rate Loans?

Here are some of the written promises/statements. If you are a law firm, preparing a complaint to the bank or a submission to the Financial Ombudsman Service (FOS) then contact Nab Customer Support Group or Bully-Banks for help and support.

Download February 4th 2008 ‘TREASURY SOLUTIONS’ Document from a snapshot of Yorkshire Bank’s Website

This document was taken from a snapshot of Yorkshire Banks Website as at February 4th 2008 and is available at this link (currently).

Here is the Treasury Document used to sell interest rate hedging products for Clydesdale Bank as of the 12th January 2008 on Clydesdale Bank’s website.

(With thanks to Bully-Banks for commenting on my research below)

1. It describes TBLs as ‘fully flexible’! This could not be more incorrect and misleading.
2. It sells TBLs as offering protection against adverse interest rate movements. I cannot see how this does not make this a regulated product under RAO 2001 Section 85 – it is designed to avoid a loss by reference to fluctuations in an index.
3. It promises that experts will look at interest rates with you. Which means they will give you advice then?
4. It emphasis the potential up-side but fails to mention the down-side. It says that TBLs are potentially profitable as they allow you to benefit from favourable rate movement BUT breakage costs are not mentioned at all! If this isn’t mis-representation I don’t know what is.

Fiona Sherrif – Bully Banks

Here is what Yorkshire Bank said on their website in respect of Tailored Business Loans December 2008 to September 11th 2012.

Yorkshire Bank Website 2008 to 2011

Funding to suit individual business needs

Capitalise on flexible lending facilities. A Tailored Business Loan from Yorkshire Bank offers a lending solution that suits your needs. By providing medium to longer-term funding, Tailored Business Loans can help protect you against interest rate movements too.

  • Fully flexible lending for amounts over £250,000
  • Provides a known maximum interest rate
  • Can be structured to match specific cashflow requirements

To find out more:

  • Call into your nearest branch or call 0845 606 4477
  • If you’re an existing Business customer, contact your Business Manager
  • Existing Business Direct customers, call 0845 606 4477

More Benefits

  • Personal attention – dedicated pro-active relationship management
  • Certainty – aids cashflow projection by providing a known maximum rate of interest to be paid
  • Protection – against adverse interest rate movements
  • Secure and potentially profitable – allows you to benefit from favourable rate movement whilst still protecting your exposure
  • Flexible – profiles can be restructured should the interest rate view change
  • Freedom – experts look after the interest rate risk with you, allowing you to concentrate on running your business

Further Features

  • Fully tailored to cover all or some of the debt
  • Can be structured to match specific cashflow requirements
  • Available in Sterling, Euros and US Dollars

Complementary Solutions

  • Interest Rate Risk Management

Important Information

  • Interest rate – agreed when deal is transacted. Speak to your Business Manager or Business Advisor for more details
  • Interest type – debit interest priced to London InterBank Offered Rate (LIBOR)
  • Interest calculated varies depending on the specific solution agreed with you. Please speak to your Business Manager or Business Advisor for more details
  • Interest paid typically monthly or quarterly
  • Minimum amount – £250,000
  • Maximum amount – unlimited

Costs

  • Apart from the various lending fees, most products within the Tailored Business Loan suite are zero cost. Please speak to your Business Manager or Business Advisor for more details
  • Terms and conditions
    • Available up to 30 year term
    • Full terms and conditions are available on request
    • Credit line may be required

In the event of non payment, breach of covenant, or non compliance with terms and conditions, we may proceed to make a call on, or realise any security pledged in support of the borrowing.

CHANGES IN THE EXCHANGE RATE MAY INCREASE THE STERLING EQUIVALENT OF YOUR DEBT.

Terms and Conditions apply. All facilities are subject to status and applicants must be aged 18 or over.

Yorkshire Bank is a trading name of Clydesdale Bank PLC which is authorised and regulated by the Financial Services Authority. Credit facilities other than regulated mortgages are not regulated by the Financial Services Authority. Clydesdale Bank PLC, Registered in Scotland (No. SC001111), Registered Office: 30 St. Vincent Place, Glasgow, G1 2HL. A member of the National Australia Bank Group of companies.

Control your exposure to interest rate risk

A business banking solution to protect cashflow against interest rate fluctuations. Interest Rate Risk Management from Yorkshire Bank offers a flexible way to minimise your exposure – and benefit from favourable rate movements.

  • Potential for profit with known maximum rate of interest and ability to benefit from favourable rate moves
  • Allows you to concentrate on running your business
  • Can be tailored to suit your business needs

To find out more:

  • Call into your nearest branch or call 0845 606 4477
  • If you’re an existing Business customer, contact your Business Manager
  • Existing Business Direct customers, call 0845 606 4477

More Benefits

  • Personal attention – Business Manager or Business Advisor can make fast decisions
  • Flexible – profiles can be restructured should the interest rate view change
  • Debt management tool – can be used to manage core and non-core debt

Further Features

  • Fully tailored to cover all or some of the debt
  • Can be structured to match specific cashflow requirements
  • Full term of the debt need not be covered
  • Available in Sterling and major foreign currencies
  • Premium-based or zero cost structures available

Complementary Solutions

Important Information

  • Interest
    • Agreed when deal is transacted. Interest varies depending on the agreed solution. Talk to your Business Manager or Business Advisor for details
    • Debit interest priced to London InterBank Offered Rate (LIBOR)
    • Typically paid monthly or quarterly
  • Minimum amount – £250,000
  • Maximum amount – unlimited
  • Costs
  • Depends on the specific solution agreed but can be zero-cost. Please speak to your Business Manager or Business Advisor for full details
  • Terms and conditions
    • Available up to 30 year term
    • Credit line may be required
    • Full terms and conditions are available on request

CHANGES IN THE EXCHANGE RATE MAY INCREASE THE STERLING EQUIVALENT OF YOUR DEBT.

Spot and forward foreign exchange deals or wholesale deposits in the London market are undertaken in accordance with the Bank of England’s Non-Investment Products (NIPS) code which is available on the Bank of England’s website (www.bankofengland.co.uk) or direct from the Bank of England, Threadneedle Street, London EC2R 8AH.

Yorkshire Bank is a trading name of Clydesdale Bank PLC which is authorised and regulated by the Financial Services Authority. Credit facilities other than regulated mortgages are not regulated by the Financial Services Authority. Clydesdale Bank PLC, Registered in Scotland (No. SC001111), Registered Office: 30 St. Vincent Place, Glasgow, G1 2HL. A member of the National Australia Bank Group of companies.

About Scott Simpson

Landlord/Property Developer sold a Fixed Rate Loan, 'Tailored Business Loan' by Yorkshire Bank. These Type of Business Loans Contained Hidden or Embedded Swaps With Huge Break Costs.