The court reconsidered the law relating to penalty clauses in contracts. The first appeal, Cavendish Square Holding BV v Talal El Makdessi, raised the issue in relation to two clauses in a substantial commercial contract. The second appeal, ParkingEye Ltd v Beavis, raised the issue at a consumer level, with a separate issue under the … Continue reading Cavendish Square Holding Bv v Talal El Makdessi; ParkingEye Ltd v Beavis: SC 4 Nov 2015
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
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
Longmore. Richards, Gloster LJJ [2015] EWCA Civ 751, [2016] Bus LR 232, [2015] WLR(D) 334 Bailii Consumer Credit Act 1974 England and Wales Banking Updated: 02 January 2022; Ref: scu.550495
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 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
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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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 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
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
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
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
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
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
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
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 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
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 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 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
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 document could not be construed other than in its clear words even though one party had clearly intended the result sought. A hire agreement would be unenforceable under the Act, depending upon whether payments were made within a year of the agreement. A payment on the day after could not be included, the agreement … Continue reading Zoan v Rouamba: CA 7 Mar 2000
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
It is crucial to the working of the Act that the parties know at the date when they make the agreement whether or not it is a regulated agreement. Judges: Sir Christopher Slade Citations: [1993] CCLR 15 Statutes: Consumer Credit Act 1974 Jurisdiction: England and Wales Cited by: Cited – Carey v HSBC Bank plc, … Continue reading Huntpast v Leadbetter: 1993
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 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
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 parties had been involved in a road traffic accident. The defendant drove into the claimant’s parked car. The claimant was unable to afford to hire a car pending repairs being completed, and arranged to hire a car on credit. He now sought payment of the cost of the credit agreement. Held: A negligent driver … Continue reading Lagden v O’Connor: HL 4 Dec 2003
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
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 Regulations. It was by way of a default condition, rather than a … Continue reading Director General of Fair Trading v First National Bank: HL 25 Oct 2001
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
Transactions were entered into under which loans were made to enable the borrower to acquire and develop certain properties were held to be unenforceable under the 1927 Act. The effect was to enrich the borrower, who had fallen into arrears of payments of interest and moneys due but was successful in his defence that all … Continue reading Orakpo v Manson Investments Ltd: HL 1977
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
