Northern Rock Asset Management (NRAM), the state-owned entity handling the 'bad bank' elements of defunct lender Northern Rock, has filed a £100m claim against international firm Eversheds, accusing it of professional negligence.
A spokesperson for the firm said the claim was being vigorously defended.
According to Eversheds, it was asked to review loan documentation by NRAM in 2010, to consider compliance with the Consumer Credit Act.
Eversheds said it advised an ‘experienced commercial lawyer’ responsible for consumer credit documentation at NRAM that its documentation did not appear to include information necessary to comply with prevailing regulations.
‘NRAM appear not to have acted on that advice for a considerable period or at all, and are now seeking to blame Eversheds for the consequences of the information being absent from the documentation,’ a spokesperson for the firm said.
The spokesperson added: ‘Eversheds is fully satisfied that it discharged its duty of care to NRAM and that the claim is without foundation.’
NRAM said it would not comment on ongoing litigation.