Conference hears about Group Action on Consequential Loss

 

Aldersgate Rooms Central Halls – Westminster 13th March 2017

The attendees heard from Adrian Maurice Chief executive of Pragmaticum Ltd, and James Oldnall Partner of Mishcon de Reya. They set out the reasons why bank customers have not been given fair redress for consequential loss, and what is proposed by way of a funded Group Action. This is the first phase of a larger strategy of getting fair redress for those SMEs mis-sold interest rate hedging products.

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Those that attended expressed their delight that there was now something tangible that they could get behind and participate in and looked forward to becoming part of the strategy outlined.

The conference was pleased to hear from Richard Curtis, who is acting for Elite Property Holdings Ltd against Barclays, that the next hearing for this case will be on the 28th June 2017. This reinforced the point made by James in his presentation that this case and that of CGL (which is also being appealed) will benefit significantly from the guidance given by Christopher Clarke LJ in his recent favourable opinion in granting WW Properties leave to appeal.

It is anticipated therefore that the preliminary issue that has been identified for the Group Action may in fact be resolved before it gets to Court. The Strategy set out in the presentations is expected to now be accelerated to benefit from these upcoming hearings.

All those that have outstanding consequential loss claims from all the banks are now encouraged to contact either of the presenters (see below) to give their business name, amount of CL claim, and name of defendant bank, to be included in this fast-developing legal landscape.

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The financial models that were presented at the conference illustrated the fact that claimants would not have to provide any funding but would give up only a minority share of the settlement achieved.

Speakers from the floor encouraged all interested parties to work together to get this initiative implemented as soon as possible as banks were now attempting to shut down the review by giving notice that unaccepted (unreasonable) offers would lapse at a future point in time (end of May 2017 in the case of Barclays)

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Over the lunch that was supplied, the conference listened to George Kerevan MP on the work and expectations of the APPG for Fair Banking. He took a large number of questions and reassured the conference that the APPG was extremely active and ambitious in seeking to develop a standard loan agreement that did not have the opt out clauses of the current ones, as well as settling up an alternative dispute resolution process that would take future schemes away from the FCA and FOS.

Pragmaticum Limited is Authorised and Regulated by the Financial Conduct Authority. Ref: 501527