Laura Sharman 16 July 2018

Councils sue Barclays over controversial LOBO loans

Barclays are being sued by 14 local authorities over allegations it committed fraud over loans to councils.

The group of councils claim the bank rigged interest rates so potentially manipulated charges to borrowers. The High Court claim - seen by The Mail on Sunday - is seeking for the loans to be rescinded, the fees to be refunded to the councils and for compensation to be awarded for damages.

Joel Benjamin, a campaigner for Debt Resistance UK, said: 'Having campaigned for councils to file fraud cases against the banks since 2014, we are thrilled councils have finally stepped in to protect local taxpayers by filing fraud claims against banks which brought our economy to the brink. 10 years after the crash, its town councils now facing bankruptcy to pay for the bankers bailouts.

'We know 240 councils have rip-off LOBO loans. We're now calling on the other 224 councils with LOBO loans to file legal action against Barclays, RBS, Dexia, ICAP, Tullet Prebon and CAPITA.'

The councils include Bristol, Bradford, Greater Manchester, Kirklees, Leeds, Liverpool, Newcastle, North East Lincolnshire, Nottingham, Oldham, Sheffield, South Gloucestershire, Walsall and West Yorkshire.

In 2015, the Channel 4 Dispatches programme found that around 240 local authorities have taken up to £15bn in LOBO loans from private banks, which charge interest rates of more than 7% in some cases.

Barclays declined to comment.

What’s happening inside the LGPS? image

What’s happening inside the LGPS?

Get the most informed take on the challenges and opportunities that substantial reform will bring at this year’s PLSA Local Authority Conference.
SIGN UP
For your free daily news bulletin
Highways jobs

Portage Worker - SEND and Inclusion

Durham County Council
Grade 8 £31,586 - £35,235
Term-time only (plus one week) – Temporary for 18 months Term-time only (plus one week) – Temporary for 12 months   We are recruiting Portage Workers Spennymoor
Recuriter: Durham County Council

Social Worker

Durham County Council
£34,314 - £37,938 (pre-progression) / £39,513 - £43,693 (post-progression)
We are looking for social workers who have completed their assessed and supported year in employment to join our Families First Service. WHAT IS INVO Durham
Recuriter: Durham County Council

Receptionist

Durham County Council
£24,404 to £25,183 pro rata p.a. Grade 3 (£12.64 to £13.05 per hour)
Casual as and when required opportunity is available Spennymoor Leisure Centre. WHAT IS INVOLVED? In this role you will professionally welcome custom Spennymoor
Recuriter: Durham County Council

Lunchtime Supervisory Assistant

Durham County Council
£24,027 pro rata
2x Lunchtime Supervisory Assistant Vacancies Would you like to work with a group of wonderful children in order to help them to have a happy and sett Durham
Recuriter: Durham County Council

Enhanced Teaching Assistant

Durham County Council
£25,584 - £27,711?pro rata
Enhanced Teaching Assistant Grade 5     £25,584 - £27,711?pro rata Full time, Term Time Only + 2 Weeks Temporary – required from 1st September 2025 un Durham
Recuriter: Durham County Council
Linkedin Banner