Barclays defeats claim based on information provided to credit reference agencies
A couple who ran a successful property development business have failed to recover losses from Barclays, which they alleged were suffered as a result of information which Barclays provided to credit reference agencies. The key finding was that there was no liability, as the information provided was accurate, but the court went on to find that the credit crunch and falling property market were likely to have caused loss in any event.
The claim arose from events in 2008 when the Bank of Scotland refused to provide remortgage finance to the claimant, Mrs Gatt, and her husband in respect of their multi-million pound home. This refusal was based on information provided to credit reference agencies by Barclays that Mr Gatt’s account was overdrawn by £260,000 against a credit limit of £1,500. It was not disputed that the account was overdrawn to that extent, but the Gatts’ case was that the overdraft had been authorised by Barclays. The claim against Barclays for breach of contract, negligence, negligent mis-statement and defamation was on the grounds that Barclays had made a false statement, which had the foreseeable consequence that the Gatts would be unable to remortgage their home to raise finance for their property-development business. That business subsequently collapsed, causing the Gatts to lose their home and other assets, and, in Mr Gatt’s case, resulting in bankruptcy (in the course of the bankruptcy, Barclays bought Mr Gatt’s claim from his Trustee and then dropped it, so that Mrs Gatt continued as sole claimant)…
If you are registered and logged in to the site, click on the link below to read the rest of the Walker Morris briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Walker Morris
News from The Lawyer
Briefings from Walker Morris
Nnew advice and guidance has been published for vloggers on how to ensure they do not unwittingly contravene consumer protection legislation or the CAP Code.
Also: defining ‘building’ in planning policy; and more
Analysis from The Lawyer
Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all
The law school war shows no signs of ending. But we have, perhaps, reached the end of the beginning.