More BOQ franchisees seek compensation

Another ten aggrieved former owner operators of branches of Bank of Queensland plan to sue the bank to forgive loans connected with their now failed businesses, the Financial Review reported. They will also seek compensation under the Trades Practices Act and other laws.

The franchise owners will follow a series of legal actions commenced by other owners of franchised BOQ branches either kicked out by the bank or who walked away. All the disappointed branch owners operated branches in and around Sydney, where BOQ's expansion into the region proved problematic several years ago.

The bank has closed or consolidated a number of those branches or appointed employed managers in some cases. The bank took losses on some loans made to operators of its branches and the recoverability of others may be at risk.

Several legal actions are already underway and a ruling is pending in the first to actually go to trial in the Federal Court.