The borrower challenged a variation of the interest rate to be charged on his regulated loan. The agreement purported to give the lender a full discretion to vary the rate on notice.
Held: The Regulations required the agreement to identify the circumstances under which the loan might be varied. The judge at first instance was wrong to require that this be something more than the lender’s ‘whim’. The agreement was not wrong at common law, and the Regulations controlled the format of the agreement not its content. The notice was clear and correct, and the absolute discretion given and notified did amount to ‘circumstances’ within the Regulations.
Citations:
[1989] 1 All ER 918
Statutes:
Consumer Credit (Agreements) Regulations 1983 (1983 No 1553) 2
Jurisdiction:
England and Wales
Cited by:
Distinguished – Paragon Finance plc v Nash etc CA 15-Oct-2001
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, . .
Lists of cited by and citing cases may be incomplete.
Consumer
Updated: 28 April 2022; Ref: scu.180916