Directors to Sue Hbos Over Fees for Small Firms ; Lawyers Claim Bank Failed to Launch Probe

Summary

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MORE than 300 company directors are set to sue HBOS, the bank acquired last year by Lloyds Banking Group, over the activities of its business lending units in Manchester and several other locations. A forthcoming action being brought by law firm Dunham Law will claim the units acted along similar lines to that of HBOS's Impaired Asset Division in Reading, Berkshire, which is already the subject of a police investigation in which six people have been arrested.

The arrests followed allegations that the unit forced clients to use adviser Quayside Corporate Services in order to receive further funding. Exorbitant fees then imposed on the companies by Quayside crippled several of them, which were then put into administration.

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Directors to Sue Hbos Over Fees for Small Firms ; Lawyers Claim Bank Failed to Launch Probe

Dean Dunham of Dunham Law said the number of company directors he was represen...

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