Southern Pacific Personal Loans Ltd v Walker and Another: CA 12 Nov 2009

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 total charge for credit. However there was nothing in the Act or Regulations to prevent the figure being so included and the loan was not unenforceable.

Mummery, Sullivan LJJ, Owen J
[2009] EWCA Civ 1176, [2009] WLR (D) 333, [2010] 1 All ER (Comm) 854, [2010] Bus LR 418
Consumer Credit Act 1974 9(1)(4), Consumer Credit (Total Charge for Credit) Regulations 1980 (SI 1980/51), Consumer Credit (Agreements) Regulations 1983 (SI 1983/1535)
England and Wales
Cited by:
Appeal fromSouthern Pacific Securities 05-2 Plc v Walker and Another SC 7-Jul-2010
The appellant borrowed a sum from the respondent under a fixed sum credit agreement. A broker administration fee had been advanced to facilitate the loan. The agreement recorded the ‘Amount of Credit’ net of the fee, and the ‘Total Amount Financed’ . .

Lists of cited by and citing cases may be incomplete.


Updated: 31 October 2021; Ref: scu.377885