The OFT alleged that the defendant companies had been engaged in breaches of the Act and the Regulations in their practices in selling gym memberships. The defendant were selling and managing memberships for gyms. They advised as to the different contract models, recommending minimum terms for lower cost schemes, and on enforcement and collection methods, including the registration of payment defaults with credit reference agencies.
Held: A distinction was to be drawn between situations where an obligation was accepted and payments then spread over time, when credit was given, and situations where payments fell due as services were provided, where no credit was being given. It was difficult to take a view of trade usage where here was clearly a wide range of terms being used. Acknowledging this, the defendant’s terms were not credit agreements.
Judges:
Kitchin J
Citations:
[2011] EWHC 1237 (Ch)
Links:
Statutes:
Consumer Protection from Unfair Trading Regulations 2008, Consumer Credit Act 1974, Unfair Terms in Consumer Contracts Regulations 1999, Council Directive 93/12/EEC of 5 April 1993 on unfair terms in consumer contracts
Jurisdiction:
England and Wales
Citing:
Cited – Dimond v Lovell HL 12-May-2000
A claimant sought as part of her damages for the cost of hiring a care whilst her own was off the road after an accident caused by the defendant. She agreed with a hire company to hire a car, but payment was delayed until the claim was settled.
Cited – Director General of Fair Trading v First National Bank HL 25-Oct-2001
The House was asked whether a contractual provision for interest to run after judgment as well as before in a consumer credit contract led to an unfair relationship.
Held: The term was not covered by the Act, and was not unfair under the . .
Lists of cited by and citing cases may be incomplete.
Consumer
Updated: 12 April 2022; Ref: scu.440234