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LONDON (Alliance News) - Seven of England's councils are suing Barclays PLC over loans worth more than GBP500 million, the BBC reported on Friday.
The broadcaster reported that North East Lincolnshire, Newcastle, Manchester, Sheffield, Nottingham, Oldham and Leeds councils are all taking action over bank loans they believe were "fraudulently sold".
According to the BBC, the bank has declined to comment on the case.
The councils took out 49 lender-option borrower-option or lobo loans between 2004 and 2010, the BBC noted, and are claiming that Barclays "manipulated the interest rates" on these loans.
"The councils want the High Court to allow them to exit the loan agreements without paying any financial penalties," the BBC reported.
"Data gathered by the campaign group UK Debt Resistance, via freedom of information requests, shows that the seven councils taking the group action took out lobos worth a total of GBP550 million," the BBC added.
https://www.bbc.co.uk/news/uk-england-leeds-47088844
Shares in Barclays closed up 0.3% at 158.62 pence on Friday.
