In an interesting (and helpful) development for Claimants, the
courts have found that there may be circumstances in which a bank
owes an 'intermediate' or 'mezzanine' duty to
customers when providing information about its products.
Facts of the case
The Claimants in this case were Mr and Mrs Thomas, a husband and
wife team, who were also partners in an award-winning organic
farming business which they built from scratch, Linscombe Farm. In
2006 they transferred their borrowing from Natwest to the
Defendant, Triodos Bank, because the bank had a reputation for
supporting businesses with strong green credentials.
In the summer of 2008, the Thomases decided they wanted to
switch a sizeable proportion of their borrowing from a variable
rate to a fixed rate. Like others who fixed the rate of their
borrowing before September 2008, Mr and Mrs Thomas found themselves
tied to a far higher rate of interest than the current market
rate.
