Laura Sharman Monday, July 16, 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 The High Court claim - seen by The Mail on Sunday - is seeking for the loans to be rescinded, the fees to be refunded to the councils and for compensation to be awarded for damages.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.

SIGN UP
For your free daily news bulletin
Highways jobs

Team Manager - DBIT Core Service, North Essex

Essex County Council
£55892.0000 - £69241.0000 per annum
Team Manager - DBIT Core Service, North EssexFixed Term, Full Time£55,892 to £69,241 per annumLocation
Recuriter: Essex County Council

Social Worker

Durham County Council
Grade 9 - £35,412 - £39,152 (pre-progression) / Grade 11 - £40,777 - £45,091 (post-progression) - Pay Award Pending
We are looking for a social worker who has completed their assessed and supported year in employment to join our Children in Care teams. In this role Durham
Recuriter: Durham County Council

Service Manager – Child Protection and Allegations Management

Durham County Council
£56,554 - £60,680 - Grade 16
We are looking for a Service Manager to lead our newly created Child Protection and Allegations Management Service. This is a brand-new leadership rol Spennymoor
Recuriter: Durham County Council

Business Rates Officer

Durham County Council
£26,403 to £28,598 p.a. (Grade 5) pay award pending
Do you have experience of dealing with members of the public in a caring and responsive manner?  Do you have good organisational, numerical and time m Spennymoor
Recuriter: Durham County Council

Assessment and Awards Officer

Durham County Council
£26,403 to £28,598 p.a. (Grade 5) pay award pending
Do you have experience of dealing with members of the public in a caring and responsive manner?  Do you have good organisational, numerical and time m Spennymoor
Recuriter: Durham County Council
Linkedin Banner