Samuel and Another v Newbold: HL 17 Jul 1906

‘Excessive interest of itself is sufficient to render a contract harsh and unconscionable. Proof of excessive interest may of itself, therefore, be sufficient to entitle the debtor to relief. What amounts to excessive interest is to be determined by the tribunal in each case, the question of risk being a material matter for consideration. When excessive interest is apparently established, any facts that tend to show that such excess does not render the contract ‘harsh and unconscionable’ should be proved in evidence by the lender. The burden is on him.’

Judges:

Lord Chancellor (Loreburn), Lords Macnaghten, James of Hereford, Robertson, and Atkinson

Citations:

[1906] UKHL 611, 44 SLR 611

Links:

Bailii

Statutes:

– Money Lenders Act 1900

Jurisdiction:

England and Wales

Banking, Consumer

Updated: 26 May 2022; Ref: scu.625469