Challenge on Unfair Banking Fees
The fees charged by NatWest/RBS subsidiary West Register are being questioned in the courts.
In a ground-breaking case, Steven McGarry is acting for a business banking client who was charged fees and interest of more than £360,000, in addition to normal interest.
The client runs a number of farms and had an original mortgage with NatWest of around £1M. When the farm ran into financial difficulties a few years ago, the clients were offered a “property participation scheme” with West Register to extend the bank loans, which they felt obliged to accept.
Shortly afterward they found a fee of £270,000 was added to their loan. While questioning this, a further £92,000 charge for interest which may not have been due was discovered. The bank then issued court proceeding for possession of the farms. In response, the family claimed the charges and interest were unlawful.
The bank applied to strike out the claim but in High Court last week the judge decided there is a valid argument that the charges are unfair and the matter will now proceed through the courts.
Steven McGarry is being instructed by Jonathan Hassall at Myerson.