Clydesdale ‘In Scope’ Review
Clydesdale Bank, including its subsidiary, Yorkshire Bank reached a voluntary agreement with the FCA to review over 2,000 sales of their Tailored Business Loans (TBLs) containing complex embedded swaps http://www.pfca.org.uk/downloads/pdf/tailored-business-loans/clydesdale-interest-rate-hedging-products-customer-communication1.pdf.
These reviews are largely now completed and in the majority of cases have resulted in full tear-ups, because these complex and toxic products should never have been sold to SMEs. The review process has highlighted a lack of consistency between how these ‘in-scope’ products have been reviewed and the routine complaint-handling of Fixed Rate TBLs which fall outside the process agreed with the FCA. Bully-Banks believes that Clydesdale Bank has failed to utilise the same review principles as it promised to do, and that customers who have complained about their Fixed Rate TBLs have been short-changed.