Business

Firms ‘ruined by HBOS executive’

By Paul Robins
May 26, 2009

Halifax Bank of Scotland (HBOS) is facing calls for an inquiry into the conduct of a worker at its Reading offices after businesses claimed they have been ruined by his actions.

Lib Dem Treasury spokesman Vince Cable has demanded an investigation by the Financial Services Authority into “very serious irregularities” at the bank. The call follows accusations that HBOS executive Lyndon Scourfield plunged business owners into greater debt by overlending.

Business customers allege Mr Scourfield, part of the “high risk” unit based in Queens Road, insisted they employed management consultants Quayside Corporate Services as a condition for getting a loan.

The alleged loans, made between 2002 and 2007, are said to have led to losses at the bank of £250 million.

The bank and management consultants Quayside Corporate Services have denied any wrongdoing.

Music publishers Nikki and Paul Turner are among those who say their business suffered as a result of dealings with Mr Scourfield and Quayside, and are currently facing eviction from their home by the bank.

Their MP James Paice,

who represents South East Cambridgeshire, also criticised the bank’s owners Lloyds for not taking customers complaints seriously.

“The whole thing stinks,” he told the BBC. “The contention that I and my colleagues have is that the bank or some of the bank’s then officials were significantly party to allowing or indeed encouraging these businesses to get into greater difficulty than they may or may not have been in the first place. They flatly refuse that.”

Mr Cable said: “If half of what I hear is true this is a very, very serious matter.”

Mr Scourfield refused to comment.

Quayside founder David Mills denied any wrongdoing, adding: “I and Quayside Corporate Services acted as advisers to a number of banks and accounting firms to help implement commercial decisions made by our clients to try to turn around failing businesses.

“I always kept the banks fully informed of progress with the businesses. Unfortunately, in a number of cases, companies were unable to pay off large debts incurred before Quayside Corporate Services’ involvement.”

In a statement Lloyds Banking group insisted it had acted in a “fair and responsible way”.

“We simply cannot comment on individual circumstances.

“However, we strongly believe that we have acted throughout in a fair and responsible way.

“Bank of Scotland deals in a sensitive and fair way with all of its corporate banking customers, including those experiencing difficulties.

“We stand by our customers and support them closely in managing their financial difficulties.”

The issue is due to be debated in the House of Commons today.

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