EAT UNLAWFUL DEDUCTION FROM WAGES At the hearing of the Claimant’s claim of unauthorised deductions, taken from his payments when he was made redundant in order to repay his car loan, the Employment Tribunal raised with the employer’s counsel the provisions of the Consumer Credit Act 1974. It then ruled upon it without giving counsel … Continue reading Guildprime Specialists Contractors Ltd v Knight: EAT 24 Sep 2012
Citations: [2021] EWHC 466 (QB) Links: Bailii Statutes: Consumer Credit Act 1974 Jurisdiction: England and Wales Banking Updated: 13 October 2022; Ref: scu.659222
Judges: Moore-Bick, Kitchin, Underhill LJJ Citations: [2014] EWCA Civ 790, [2014] WLR(D) 252, [2014] Bus LR 1079 Links: Bailii, WLRD Statutes: Consumer Credit Act 1974 56(1)(c) Jurisdiction: England and Wales Consumer, Banking Updated: 26 May 2022; Ref: scu.526387
A lender sought repossession of a property securing a loan from 1998. The borrower sought to assert that the loan was an extortionate credit bargain under the Act. The lender asserted that that claim was out of time. Held: A claim under a statute was an action upon a specialty, and that accordingly the limitation … Continue reading Rahman v Sterling Credit Ltd: CA 17 Oct 2000
The Claimant sought relief under sections 75 and/or 56 of the Consumer Credit Act 1974 for the alleged misrepresentation of a supplier in selling solar panels to the Claimant. The alleged representation related to the performance of the panels. The Defendant funded the purchase by a debtor-creditor-supplier agreement within the meaning of section 12 of … Continue reading Hodgson v Creation Consumer Finance: ComC 22 Dec 2021
The defendants, a regulated consumer credit provider provided its srevices to A’s customers. A’s promotional materials were found to be in breach of the Act and the defendant was now prosecuted for procuring that offence.
Held: The . .
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The interpretation of the word ‘debtor’ in section 75 of the Consumer Credit Act 1974 (‘CCA 1974’). Should ‘debtor’ be interpreted as referring only to contractual parties to a credit agreement or should it include third party beneficiaries of such an agreement? Judges: Lady Justice Macur Lady Justice Nicola Davies And Lady Justice Carr Citations: … Continue reading Cooper v The Freedom Travel Group Ltd: CA 25 Nov 2022
The court considered whether it had power to award a post judgment interest at a contractual rather than the statutory interest rate. Held: There is no power of the court in this claim to add any amount beyond the statutory interest to the amount of the judgment debt, and that applies both to the contractual … Continue reading Chubb and Another v Dean and Another: ChD 24 Apr 2013
The OFT failed in its attempt to make the defendant credit card company liable under the 1974 Act for purchases abroad. Judges: Gloster J DBE Citations: [2004] EWHC 2600 (Comm), [2005] 1 All ER 843, [2005] 1 All ER (Comm) 354, [2005] ECC 27 Links: Bailii Statutes: Consumer Credit Act 1974 75 Jurisdiction: England and … Continue reading Office of Fair Trading v Lloyds TSB Bank Plc and others: ComC 12 Nov 2004
Citations: [2020] EWHC 672 (QB) Links: Bailii Statutes: Limitation Act 1980 32, Consumer Credit Act 1974 140A-D Jurisdiction: England and Wales Consumer, Limitation Updated: 17 November 2022; Ref: scu.649907
The company sought to enforce its loan agreement and charge over the defendants’ property. The defendants appealed saying that the agreement was unenforceable under the Act, since a commission had been paid to the introducing broker, and his fee had been added to the loan amount. The agreement was a fixed sum credit agreement regulated … Continue reading Wilson and Another v Hurstanger Ltd: CA 4 Apr 2007
Citations: [1997] EWCA Civ 2113 Statutes: Consumer Credit Act 1974 15 Jurisdiction: England and Wales Consumer, Litigation Practice Updated: 09 November 2022; Ref: scu.142510
The defendant sought to assert that the agreement under which possession of her house was sought was an extortionate credit bargain. She had to obtain leave to appeal out of time. Held: The rules required an application to be supported by evidence. In this case the leave had been granted without formal consideration of the … Continue reading Southern and District Finance Plc v Turner: CA 7 Nov 2003
Whether a bank’s ‘all monies mortgage’ gives the bank a security over the premises subject to the mortgage in respect of monies due under a regulated consumer credit agreement governed by the Consumer Credit Act 1974 which is not in itself a secured debt but breach of which has led the bank to obtain a … Continue reading Northern Bank Ltd v Mckinstry and Another: ChNI 22 Mar 2001
Private one-off loan by person in business is not a business activity. Citations: Times 28-May-1993 Statutes: Consumer Credit Act 1974 40 Jurisdiction: England and Wales Income Tax Updated: 26 October 2022; Ref: scu.81237
The appellant obtained loans enabling him to buy cars by giving false information when entering into hire purchase agreements. The relevant agreement did not contain all the prescribed information and was improperly executed so that by virtue of section 65 it was only enforceable on the order of the court. The appellant had been convicted … Continue reading Regina v Modupe: CACD 1991
Time share lettings are not rights in rem. UK consumer law applies to loans made for their purchase, and UK banks are liable for misrepresentations made by foreign companies if they are providing the finance. Judges: Morris Ward, Potter LJJ Citations: Times 18-Nov-1996, Gazette 12-Feb-1997, [1996] EWCA Civ 847, [1999] QB 1, [1997] CLC 391, … Continue reading Jarrett v Barclays Bank Plc, Royal Bank of Scotland Plc and Jones v First National Bank Plc and Peacock v First National Bank Plc: CA 31 Oct 1996
Judges: Mr Justice Lavender Citations: [2022] EWHC 2519 (KB) Links: Bailii Statutes: Consumer Credit Act 1974 56(1)(c) 56(2) Jurisdiction: England and Wales Banking Updated: 21 October 2022; Ref: scu.681922
The court considered applications arising on requests for the production by lenders of copies of credit card agreements, and the consequences of a failure to do so. Judges: Waksman QC J Citations: [2009] EWHC 3417 (QB), [2010] Bus LR 1142 Links: Bailii Statutes: Consumer Credit Act 1974 78 Jurisdiction: England and Wales Consumer, Banking Updated: … Continue reading Carey v HSBC Bank Plc: QBD 23 Dec 2009
The appellant sought under section 104A to recover a Payment Protection Insurance premium paid in support of a loan. The borrower dealt directly with the lender, who acted as an intermediary with the insurer. The commission taken by the lender was 87%. Held: Tomlinson LJ described this level of commission as ‘quite startling’, adding that … Continue reading Harrison and Another v Black Horse Ltd: CA 12 Oct 2011
The respondent was employed as a solicitor to be paid commission on fees paid. She received advances against those payments. She was dismissed after failing to reach the targets. The employer sought repayment of the excess advances. She replied that the payments were Credit, and void under the Act. Held: The agreement did not provide … Continue reading McMillan Williams (a Firm) v Range: CA 17 Mar 2004
This appeal concerns a ‘Tomlin’ order made to dispose of proceedings which CFL Finance Limited had brought against G. It raises an important and difficult issue as to when, if ever, the Consumer Credit Act 1974 applies to agreements settling litigation. Judges: Lord Justice Newey Citations: [2021] EWCA Civ 228 Links: Judiciary Statutes: Consumer Credit … Continue reading CFL Finance Limited v Gertner: CA 23 Feb 2021
Citations: [2020] EWHC 1241 (Ch) Links: Bailii Jurisdiction: England and Wales Cited by: Appeal from – CFL Finance Limited v Gertner CA 23-Feb-2021 This appeal concerns a ‘Tomlin’ order made to dispose of proceedings which CFL Finance Limited had brought against G. It raises an important and difficult issue as to when, if ever, the … Continue reading Gertner and Another v CFL Finance Ltd: ChD 22 May 2020
The appellant had failed in his challenge to the bank’s imposition of charges. Citations: [2011] EWCA Civ 354 Links: Bailii Statutes: Consumer Credit Act 1974 78 Jurisdiction: England and Wales Citing: Appeal from – Carey v HSBC Bank plc, Yunis v Barclays Bank plc and similar QBD 23-Dec-2009 (Manchester Mercantile Court) The court considered the … Continue reading Brookes v HSBC Bank Plc: CA 29 Mar 2011
‘when, if ever, the Consumer Credit Act 1974 applies to agreements settling litigation.’ Judges: Lord Justice Newey Citations: [2021] EWCA Civ 228 Links: Bailii Jurisdiction: England and Wales Contract Updated: 03 September 2022; Ref: scu.658876
The bank appealed against an order for pre-action dicslosure and payment of the costs to date of its customers request for copies of the agreement under which it sought payment, and otherwise. Held: After Carey it was not to be argued that the bank was under a duty to provide the original signed agreement or … Continue reading Kneale v Barclays Bank Plc (T/A Barclaycard): ComC 23 Jul 2010
The lender used part of the loan to repay a small amount of arrears of the claimant on another loan. The part so used was not part of the objective of the loan, but one of the costs of obtaining it. Held: The deduction was properly part of the true cost of the credit, and … Continue reading McGinn v Grangewood Securities Ltd: CA 23 Apr 2002
The customer sought to appeal against a finding of liability for the debt on his credit card, and that the credit card agreement which operated between Mr Brophy and the bank for a period of some 14 years, from 1994 to 2008, was a valid and enforceable agreement. Held: The appeal failed. Judges: Flaux J … Continue reading Brophy v HFC Bank: QBD 22 Mar 2010
Judges: Waksman QC J Citations: [2010] EWHC 612 (QB) Links: Bailii Statutes: Consumer Credit Act 1974 78 Consumer, Banking Updated: 16 August 2022; Ref: scu.406174
The parties had entered into a loan agreement at a high rate of annual interest but with monthly rests. The court was asked to set aside the agreement as unfair under the 1974 Act. Judges: Leggatt QC J Citations: [2009] EWHC 3264 (QB), [2010] 1 All ER (Comm) 864, [2010] Bus LR D73 Links: Bailii … Continue reading Patel v Patel: QBD 10 Dec 2009
Application by the joint administrators of LSF for directions arising out of loan agreements made or acquired by LSF before the administration began, under which secured loans were made to consumers but which were unenforceable because they contravened provisions of the Consumer Credit Act 1974. Held: The phrase ‘realisation of the security’ in section 106, … Continue reading Jack and Another (London Scottish Finance Ltd) v Craig and Others: ChD 17 Dec 2013
Whether the cause of action for the outstanding sums accrued when D first defaulted in his payments or only when D failed to comply with the default notice stipulated by CCA s.87(1) and required by clause 8f of the Agreement. D appealed from a finding against him. Held: The appeal failed. ‘The effect of the … Continue reading Doyle v PRA Group (UK) Ltd: CA 23 Jan 2019
The appellant had entered into a Consumer Credit Agreement with the respondent, but the form signed by him was not the same as that signed by the bank, and it was unenforceable. He fell into arrears. Judges: Lord Dyson MR, Beatson, Briggs LJJ Citations: [2014] EWCA Civ 1413, [2015] 2 All ER (Comm) 465, [2015] … Continue reading Grace and Another v Black Horse Ltd: CA 30 Oct 2014
The OFT appealed a decision denyng that a credit card issuer had connected lender liability in respect of purchase by card holders abroad. Held: The company took the benefit of having its card accepted by suppliers abroad, and therefore also had the liability sought. Judges: Waller, Smith and Moore-Bick LJJ Citations: [2006] EWCA Civ 268, … Continue reading Office of Fair Trading v Lloyds TSB Bank Plc and others: CA 22 Mar 2006
The court considered a case involving the selling of payment protection policies by lenders. The defendants said that since the bank had required them to take out the policy, its cost should have been included in the total charge for credit. Since it had not been, the agreement was irredemably unenforceable. Held: The insurance had … Continue reading Black Horse Ltd v Speak and Another: QBD 21 Jul 2010
The court declined an appeal against an order that copier hire agreements were not regulated under the 1974 Act. Citations: [2008] EWCA Civ 382, [2008] BusLR 1231 Links: Bailii Statutes: Consumer Credit Act 1974 15 Jurisdiction: England and Wales Citing: Appeal from – TRM Copy Centres (UK) Ltd and others v Lanwall Services Ltd QBD … Continue reading TRM Copy Centres (UK) Ltd and others v Lanwall Services Ltd: CA 17 Apr 2008
Citations: [2006] EWHC 3774 Links: Bailii Statutes: Consumer Credit Act 1974 61 Jurisdiction: England and Wales Consumer, Banking Updated: 13 July 2022; Ref: scu.408694
Citations: [2006] EWHC 3769 (QB) Links: Bailii Statutes: Consumer Credit Act 1974 142(1) Jurisdiction: England and Wales Consumer, Banking Updated: 12 July 2022; Ref: scu.347408
The court was asked whether a pawnbroker’s credit agreement was extortionate, and if unenforceable what what damages could be awarded. Citations: [2006] EWCA Civ 1088 Links: Bailii Statutes: Consumer Credit Act 1974 106 Jurisdiction: England and Wales Contract, Consumer Updated: 07 July 2022; Ref: scu.243999
The respondents appealed an order for possession under a legal charge which they argued was an extortionate credit bargain, and had been improperly executed and was unenforceable. The appellants were ‘non-status borrowers’. Held: A concession letter was not intended to over-ride other clear descriptions of the appellant’s obligations. The judge had compared the interest rate … Continue reading Broadwick Financial Services Limited v Spencer, Spencer: CA 30 Jan 2002
The customer challenged a series of pawn agreements. The broker appealed the finding that the contracts were invalid, on the basis that the judgment had created an unjust enrichment. Held: The appeal failed: ‘in pawn transactions the debtor is particularly at risk because there is nothing to stop the pawnbroker selling the security in order … Continue reading Penelope Wilson v Howard (Pawnbrokers) Ltd: CA 4 Feb 2005
Judges: Hamblen J Citations: [2012] EWHC 2402 (QB), [2013] 1 WLR 693, [2012] CTLC 54, [2013] 1 All ER (Comm) 572, [2012] ECC 23 Links: Bailii Statutes: Consumer Credit Act 1974 141 189 Jurisdiction: England and Wales Consumer Updated: 21 June 2022; Ref: scu.463853
A landowner sought repossession of land from his agricultural tenant for failure to pay his rent. The tenant alleged that a charge was an extortionate credit bargain. The landlord appealed. Held: The Court must have regard to the evidence and cannot adopt an explanation unsupported by evidence. Nor in the absence of evidence supporting it, … Continue reading Lavin v Johnson: CA 31 Jul 2002
Citations: [1999] EWCA Civ 2081 Links: Bailii Statutes: Consumer Credit Act 1974 5 Jurisdiction: England and Wales Contract, Consumer Updated: 31 May 2022; Ref: scu.146996
Adjourned second application for leave to appeal. Whether differential rates applied by mortgage valid. Citations: [2002] EWCA Civ 110 Links: Bailii Statutes: Consumer Credit Act 1974 138 139 Jurisdiction: England and Wales Consumer Updated: 30 May 2022; Ref: scu.216729
A statement of an APR in the sale of a financial services product remained a price indication, and, if it was miscalculated, that was a misleading price indication, and criminal, despite provisions in the Consumer Credit legislation. What was given was a price under the contract: ‘The total amount payable under the contract which can … Continue reading Regina v Kettering Magistrates’ Court ex parte MRB Insurance Brokers Limited: Admn 4 Apr 2000
The parties entered into a regulated copier finance agreement. The defendant defaulted. The plaintiffs served a notice to determine the agreement, but providing what sum was to be paid to continue. The defendant said that the notice specified the amount incorrectly, and appealed. Held: A notice under the Consumer Credit Act specifying an amount of … Continue reading Woodchester Lease Management Services Ltd v Swayne and Co (A Firm): CA 26 Aug 1998
Rules under the Act which precluded a party from any recovery for non-compliance with its provisions were disproportionate, and a denial of the human right of the lender to a fair trial, and a declaration of incompatibility was made. A pawnbroker’s agreement did not correctly state the amount of credit, and the broker was prevented … Continue reading Wilson v First County Trust (2): CA 2 May 2001
The administrative charges for entering into a loan were not to be included in the loan, but rather as an item entering into the total charge for credit. To hold otherwise went against accounting practice, would disguise the cost of the loan, and would be against the spirit of the Act,which was to protect consumers … Continue reading Wilson v First County Trust Ltd (1): CA 3 Nov 2000
The court asked whether a series of smaller loans were governed by the 1974 Act. Three facilities had been provided under one loan agreement. 2 loans were held to be for unrestricted-use credit. Held: Three credit agreements separately signed, but part and parcel of the same transaction counted as one aggregate transaction to determine whether … Continue reading National Westminster Bank Plc v Story and Another: CA 7 May 1999
The purpose of the section was to prevent a lender using a second collateral agreement to circumvent the provisions of the Act restricting his freedom to include provisions detrimental to the borrower in the main agreement. Citations: Times 26-Mar-1999 Statutes: Consumer Credit Act 1974 113(8) Consumer, Banking Updated: 15 May 2022; Ref: scu.79143
A rogue had purchased a car, using a false name to obtain finance. He had then sold it to the defendant. The finance company claimed the car back. Held: The dealer had not taken all the steps he might have done to check the identity of the buyer, but Cundy v Lindsay was binding, and … Continue reading Norman Hudson v Shogun Finance Ltd: CA 28 Jun 2001
Judges: Reid SP Citations: 1980 SLT (Sh Ct) 28 Statutes: Consumer Credit Act 1974 75 Jurisdiction: Scotland Cited by: Cited – Durkin (Aberdeen Sheriff Court) v DSG Retail Ltd SCS 15-Jun-2010 The appellant had purchased a computer from an associated company of the defender with finance from the defender. He complained that on his return … Continue reading United Dominions Trust Ltd v Taylor: ScSf 1980
(Leeds County Court) The defendant sought to escape liability under a consumer credit agreement saying that the bank had failed to provide a true copy of the agreement as required by the Act. Held: A strict requirement that the bank produce the original could work injustice. A photocopy was not necessary and a reconstruction would … Continue reading Lloyds Bank v Mitchell: CC 13 Sep 2009
OFT Claim: The borrowers, Yates and Lorenzelli, alleged (1) that there was an unfair relationship under section 140A of the Consumer Credit Act; (2) that the creditor procured a breach by the broker of the fiduciary duty owed by it to the borrowers by paying to the broker an undisclosed commission; and (3) that the … Continue reading Yates and Lorenzelli v Nemo Personal Finance and Another: 14 May 2010
The borrower took out a fixed interest loan from the bank. It was a regulated consumer credit agreement under the 1974 Act. He defaulted, and the plaintiff sought payment of the full remaining balance. Judgment was entered for that sum. The creditor applied to be allowed to pay by instalments, but the registrar set aside … Continue reading Forward Trust Ltd v Whymark: CA 1989
The borrower had first borrowed money on mortgage (the 1989 loan) to pay off an existing third party mortgage (as well as raising additional funds) and later paid off the new mortgage as part of the process of substituting that mortgage for a different one from the same lender. One issues was whether the 1989 … Continue reading The National Home Loans Corporation v HannahRahman: 1997
The respondent appealed against a finding that the provision which made a loan agreement completely invalid for lack of compliance with the 1974 Act was itself invalid under the Human Rights Act since it deprived the respondent lender of its property rights. It was also argued that it was not possible to make a declaration … Continue reading Wilson v Secretary of State for Trade and Industry; Wilson v First County Trust Ltd (No 2): HL 10 Jul 2003
The defendant sought leave to appeal against an order for payment of sums due under a leasing agreement. He said that the contract was governed by the 1974 and 1977 Acts. Citations: [1997] EWCA Civ 2366 Statutes: Consumer Credit Act 1974 61 62 63, Unfair Contract Terms Act 1977 Jurisdiction: England and Wales Consumer Updated: … Continue reading Anglo Leasing Plc v Michael K Pascoe and Michael a P Harris (Formerly Trading As Harris Pascoe): CA 25 Sep 1997
Consumer Credit Act 1974, ss. 16B, 140A, 140B – Whether loan agreement regulated – Whether business exemption applies – Burden of proof – Effect of failures to give extended disclosure and serve witness evidence – Sufficiency of business purposes declaration – Omission of words ‘or predominantly’ after ‘wholly’ – Whether strict compliance with prescribed form … Continue reading Campbell v Tyrrell and Others: ChD 8 Mar 2022
A County Court can give time for payment of consumer credit debt and set new interest rate for the agreement. Citations: Times 19-Apr-1995 Statutes: Consumer Credit Act 1974 129 Jurisdiction: England and Wales Consumer Updated: 10 April 2022; Ref: scu.89422
A lender may use an initial fixed rate as the basis for an APR quotation. The APR on a 25 year mortgage may be calculated on the initial fixed rate not the subsequent variable one. Citations: Independent 25-Aug-1993, Times 16-Jul-1993 Statutes: Consumer Credit Act 1974 46 Consumer, Banking Updated: 09 April 2022; Ref: scu.84213
The defendant appealed against a finding that he was liable under a credit agreement with the plaintiff. The lower court had rejected his argument that the agreement was one cancellable by him under section 67. Held: The defendant’s appeal succeeded. No notification of cancellation rights had been given when the defendant signed up for the … Continue reading Moorgate Services Ltd v Kabir: CA 25 Apr 1995
Claimant’s appeal against the award of statutory interest saying that 3% had not been enough. Citations: [2018] EWCA Civ 87 Links: Bailii Statutes: Consumer Credit Act 1974 40 Jurisdiction: England and Wales Damages, Contract, Consumer Updated: 04 April 2022; Ref: scu.604157
The appellant challenged a mortgagee’s possession order saying that the loan agreements sought to be enforced were invalid and the charges unenforceable. The loan had been in two parts. She said that as a multi-part agreement it fell within section 18. Held: The court considered the authorities including an article by Mr Bennion on the … Continue reading Heath v Southern Pacific Mortgage Ltd: ChD 29 Jan 2009
Claim for repayment of the balance of eighteen loans said to have been made to the Defendant. The total loaned was about pounds 1,125,000. Less repayments, and including an additional 10 percent he claims to be entitled to on the money advanced, his claim is for pounds 240,500. Besides putting him to strict proof of … Continue reading Khodari v Al Tamimi: QBD 18 Dec 2008
The claimants sought repayment by the bank of sums paid to them for Payment Protection Insurance policies sold to them in connection with loans made by the bank. The Bank now resisted an application for leave to amend the particulars of the counterclaim to allege that the taking out of the insurance had been made … Continue reading Barnes and Another v Black Horse Ltd: QBD 31 May 2011
(Manchester Mercantile Court) The court considered the effects in detail where a bank was unable to comply with a request under section 78 of the 1974 Act to provide a copy of the agreement signed by the client. Held: The court set out to give guidance on these issues. A photocopy of the signed document … Continue reading Carey v HSBC Bank plc, Yunis v Barclays Bank plc and similar: QBD 23 Dec 2009
The appellant challenged possession orders under mortgages, saying that the mortgage arrangement was unfair under section 140A of the 1974 Act. He said that the lender’s valuation had been excessive. Held: With the exception of his treatment of the procuration fee, the judge was entitled to conclude that there was no unfairness in the relationship … Continue reading Nelmes v Nram Plc: CA 26 May 2016
The claimant, formerly Northern Rock, pursued repayment of many loans based on part secured and part unsecured loans. The defendants said that the loans were unenforceable against them under the Consumer Credit legislation because the requisite information had not been provided. Burton J [2014] EWHC 4174 (Comm) Bailii Consumer Credit Act 1974 8(2), Consumer Credit … Continue reading NRAM Plc v McAdam and Another: ComC 10 Dec 2014
Appeal from the decision of Bradford and Leeds County Courts concerning the application of the Consumer Credit Act 1974 (‘the Act’, as amended by the Consumer Credit Act 2006) to an agreement dated 8th July 2010 (‘the Credit Agreement’), under which the Respondent to this appeal, being the Claimant below, provided bridging finance to the … Continue reading McMullon v Secure The Bridge Ltd: CA 5 Aug 2015
Thorpe, Lloyd, Patten LJJ [2011] EWCA Civ 105, [2011] ECC 13 Bailii Consumer Credit Act 1974 78 England and Wales Consumer, Banking Updated: 03 January 2022; Ref: scu.428859
Claims for compensation under the Consumer Credit Act 1974 arising from payment protection insurance (‘PPI’) policies taken out at the same time as agreements for credit cards from the Royal Bank of Scotland (‘RBS’). The issues in this appeal are about how the Act in its form as amended on 6 April 2007 applies to … Continue reading Smith and Another v Royal Bank of Scotland Plc: CA 3 Dec 2021
Appeal against award of sums remaining due under a mortgage after redemption. Tolson QC HHJ [2015] EW Misc B4 (CC) Bailii Consumer Credit Act 1974 140A England and Wales Contract, Consumer Updated: 29 December 2021; Ref: scu.545101
The House was asked whether the liability of a credit card company under the 1974 Act applied where the contract was performed abroad and subject to foreign law. Held: The principle which disapplied an English statute in an extra-territorial situation did not apply where the creditor was within the UK. Section 75(2) is therefore an … Continue reading Office of Fair Trading v Lloyds TSB Bank PlC and Others: HL 31 Oct 2007
The 2008 Order had made retrospective provision as to the duty to furnish certain statements to consumer borrowers. The court was now asked: ‘where a creditor has provided the debtor with a statement which fails to set out the information required by the Regulations (‘a non-compliant statement’), when does the period of non-compliance commence?’ The … Continue reading JP Morgan Chase Bank, National Association v Northern Rock (Asset Management) Plc: ChD 19 Feb 2014
Hakbert DCJ [2014] EW Misc 1 (CC) Bailii Consumer Credit Act 1974 56 75 Consumer Updated: 30 November 2021; Ref: scu.521633
The claimant sought repayment of a personal protection insurance premium paid to her broker. The broker was now in insolvent liquidation, and she sought to recover the premium from the next intermediary. Held: Any limitation of section 140A(1)(c) to acts or omissions for which the creditor was personally or vicariously responsible would imply that the … Continue reading Plevin v Paragon Personal Finance Ltd and Another: CA 16 Dec 2013
The customer appealed against an order finding that his credit card agreement was binding upon him. Held: The appeal failed. His argument that the application form amounted only to an invitation to treat, and that the contract was one made by conduct only and therefore not compliant with the 1974 Act, failed. The form was … Continue reading HSBC Bank Plc v Brophy: CA 2 Feb 2011
The defendant sought to re-open the question of whether the charge under which he might otherwise be liable was an extortionate credit bargain. The creditor said that that plea was time barred. The defendant argued that a finding that the agreement amounted to an extortionate bargain would not be a substantive relief, and was therefore … Continue reading Nolan v Wright: ChD 26 Feb 2009
PPI Sale – No Recovery from Remote Parties The claimant sought repayment of payment protection insurance premiums paid by her under a policy with Norwich Union. The immediate broker arranging the loan was now insolvent, and she sought repayment from the second and other level intermediaties. She said that the commission disclosure by the defendants … Continue reading Plevin v Paragon Personal Finance Ltd: SC 12 Nov 2014
The court was asked to consider whether there was any implied term limiting the power of a mortgagee to set interest rates under a variable rate mortgage. Held: A loan arrangement which allowed a lender to vary the implied rate of interest, included an implied term not to impose an unreasonable or extortionate rate, nor … Continue reading Paragon Finance plc v Nash etc: CA 15 Oct 2001
Each party contracted hire copiers to shops and offices. The claimant said that the defendant had interfered with their contracts by substituting their equipment. The defendants said that the claimants’ contracts were controlled by the 1974 Act, but that the claimant was not registered and could not enforce the agreements. Held: Section 15 regulated agreements … Continue reading TRM Copy Centres (UK) Ltd and Others v Lanwall Services Ltd: HL 17 Jun 2009
Various credit card customers said that the respondent banks had mis-stated the interest rates applied to them, in that the interest charged did not match the APR advertised, and that therefore the agreements were unenforceable. Held: The claimants’ calculations did not apply. The driver of the interest rate was not the statement as to the … Continue reading Sternlight v Barclays Bank Plc: QBD 22 Jul 2010
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. Held: The arrangement was a consumer credit … Continue reading Dimond v Lovell: HL 12 May 2000
Cancellation of Hire Finance Contract The claimant had bought a PC with a finance agreement with the respondent. He rejected it a day later, but the respondent refused to cancel the credit agreement. The respondent had threatened to report his non-payment to credit reference companies, which in due course caused the appellant more difficulties. He … Continue reading Durkin v DSG Retail Ltd and Another: SC 26 Mar 2014
The bank appealed against an order that a consumer credit agreement was unenforceable for failing to meet the requirements. The amount of credit figure had been calculated to include the deferred obligation to pay the broker’s fee. Held: The appeal succeeded. The fee was not part of the amount of credit, but rather of the … Continue reading Southern Pacific Personal Loans Ltd v Walker and Another: CA 12 Nov 2009
Manchester County Court – The claimant sought repayment of insurance premiums paid as payment protection insurance when aking out a loan with the defendants as advised by the second defendant. The second defendant was in liquidation by the time her claim was issued. In pursuing a claim for at the most andpound;5,000, her lawyers had … Continue reading Plevin v Paragon Personal Finance Ltd and Another: Misc 4 Oct 2012
The several cases claimed the cost of provision by credit hire companies of car hire and repair services to the innocent victims of road accidents. The transactions were ‘res inter alios acta’ – collateral to the commission of the tort. . .
The court considered the effect of an agreement within the 1974 Act falling into more than one category of agreement. Part was used to be used for the repayment of an existing mortgage (restricted use credit), and part was unrestricted. The question . .
The appellant had purchased a computer from an associated company of the defender with finance from the defender. He complained that on his return of the computer the defender had failed to cancel the consumer credit agreement, causing him losses. . .
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References: [1997] CCLR 7 The borrower had first borrowed money on mortgage (the 1989 loan) to pay off an existing third party mortgage (as well as raising additional funds) and later paid off the new mortgage as part of the process of substituting that mortgage for a different one from the same lender. One issues … Continue reading The National Home Loans Corporation v Hannah: 1997
Conviction of two counts of converting criminal property contrary to section 327 of the Proceeds of Crime Act 2002, and to three counts of possession of criminal property contrary to section 329 of the same Act. He was also convicted of one count of engaging in the provision of unlicensed personal credit agreements contrary to … Continue reading Linegar, Regina v: CACD 12 Mar 2009
Citations: [2013] EWHC 199 (QB), [2013] Bus LR 501 Links: Bailii, WLRD Statutes: Consumer Credit Act 1974 Jurisdiction: England and Wales Consumer, Banking Updated: 19 November 2022; Ref: scu.470845
The claimants sought an injunction under the regulations to prevent the defendant bank from including in any of its agreements a clause allowing them to claim interest on judgments on regulated agreements. Judges: Evans-Lombe J Citations: [1999] EWHC Ch 206, [2000] 1 WLR 98 Links: Bailii Statutes: Unfair Terms in Consumer Contract Regulations 1994, Consumer … Continue reading Director General of Fair Trading v First National Bank Plc: ChD 30 Jul 1999
Action to recover overdraft. Citations: [2005] EWCA Civ 473 Links: Bailii Statutes: Consumer Credit Act 1974 Jurisdiction: England and Wales Banking, Consumer Updated: 21 October 2022; Ref: scu.224476
Issues arose as to whether car hire agreements were exempt from regulation under the Act. They provided that payment was to be made in 12 months ‘from the start of the agreement’. Held: The first question was whether the time by which the hirer was required to make payment coincided with the end of the … Continue reading Thew v Cole; King v Daltray: CA 16 Dec 2003
The parties entered into pawnbroking arrangements. In order to get around the consequences of the 1974 Act, the agreements were antedated. Held: The court would not allow parties to contract out of the 1974 Act. Also, by including a document fee which was in reality deducted in advance, the agreement misstated the consideration and was … Continue reading Wilson v Robertsons (London) Ltd.: ChD 5 Jul 2005
