Last ditch attempt to thwart POCA in the consumer protection field – Six Pump Court

‘The Defendant was convicted of 8 counts of carrying on a consumer credit business without a licence (Section 39 Consumer Credit Act 1974 (“CCA”) ) (“illegal money lending”) and was sent to prison. Birmingham City Council whose team has vast experience in and has conduct of most prosecutions in this area of work applied under Proceeds of Crime Act 2002 (“POCA”) to confiscate the Defendant’s property and in particular a house he had purchased with the proceeds of his business. The case was not a “lifestyle” case.’

Full story (Word)

Six Pump Court, 12th May 2014


Hire purchase agreement not necessarily supply of goods at the outset, UK tax tribunal rules –

Posted May 20th, 2014 in consumer credit, news, sale of goods, taxation, tribunals, VAT by sally

‘Hire purchase (HP) agreements will not necessarily amount to a supply of goods for the purposes of VAT liability at the outset of the contract, the UK’s Upper Tax Tribunal has ruled.’

Full story, 19th May 2014


Kásler and another v OTP Jelzálogbank Zrt – WLR Daily

Kásler and another v OTP Jelzálogbank Zrt (Case C‑26/13); [2014] WLR (D) 180

‘The expression the “main subject matter of a contract” in article 4(2) of Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts covered a term, incorporated in a loan agreement denominated in foreign currency concluded between a seller or supplier and a consumer and not individually negotiated, pursuant to which the selling rate of exchange of that currency was applied for the purpose of calculating the repayment instalments for the loan, only in so far as it was found, which it was for the national court to ascertain, that that term laid down an essential obligation of that agreement which characterised it. Such a term, in so far as it contained a pecuniary obligation for the consumer to pay, in repayment of instalments of the loan, the difference between the selling rate of exchange and the buying rate of exchange of the foreign currency, could not be considered as “remuneration” the adequacy of which as consideration for a service supplied by the lender could not be the subject of an examination as regards unfairness under article 4(2) of Directive 93/13.’

WLR Daily, 30th April 2014


Oh Mr Ghopee – NearlyLegal

Posted April 23rd, 2014 in appeals, consumer credit, licensing, loans, news, striking out by sally

‘God, we are told, loves a trier. Perhaps fortunately, the Court of Appeal takes a less emollient approach with an unlawful money lender who has been repeatedly featured on this site.’

Full story

NearlyLegal, 23rd April 2014


Supreme Court hands down judgment in Durkin v DSG Retail Limited and another – Henderson Chambers

‘On 26 March 2014 the Supreme Court handed down its decision in Durkin v DSG Retail Limited and another. The judgment in this long-running case addresses the issue of a consumer’s right, in the context of a debtor-creditor-supplier agreement, to rescind the credit agreement on lawful rescission of the sale agreement.’

Full story

Henderson Chambers, 28th March 2014


Credit card companies face FCA competition inquiry – The Guardian

Posted April 4th, 2014 in consumer credit, financial regulation, inquiries, news by sally

‘Credit card providers will come under the spotlight of the City regulator, amid concerns that vulnerable customers are being offered “payday loans with plastic” and paying high interest rates which subsidise wealthier borrowers.’

Full story

The Guardian, 3rd April 2014


Durkin (Appellant) v DSG Retail Ltd and another (Respondents) (Scotland) – Supreme Court

Durkin (Appellant) v DSG Retail Ltd and another (Respondents) (Scotland) [2014] UKSC 21 (YouTube)

Supreme Court, 26th March 2014


Durkin v DSG Retail Ltd and another – WLR Daily

Durkin v DSG Retail Ltd and another [2014] UKSC 21; [2014] WLR (D) 144

A restricted-use credit agreement under section 12(b) of the Consumer Credit Act 1974 which related to a specified supply transaction was conditional upon the substantive survival of that supply transaction, so that a purchaser who rescinded the supply agreement for breach of contract could also rescind the credit agreement.

WLR Daily, 26th March 2014


Richard Durkin: ‘Mixed feelings’ for the man who fought a £250,000 16-year PC World laptop credit dispute with HFC bank – The Independent

Posted March 27th, 2014 in appeals, banking, consumer credit, damages, duty of care, news, rescission, Supreme Court by tracey

‘A man placed on a credit blacklist after a row over payments for a laptop computer said today he had “mixed feelings” despite winning a court battle that lasted 16 years.’

Full story

The Independent, 26th March 2014


Is a limited recourse agreement no longer an effective weapon against winding-up? – 11 Stone Buildings

Posted March 26th, 2014 in consumer credit, EC law, insolvency, news, winding up by sally

‘This article questions the decision in ARM Asset-Backed Securities S.A. [2013] EWHC 3351 CH which found that a company was insolvent despite a contractual limited recourse provision which provided that the company was not liable to pay its bondholders more than its available funds.’

Full story

11 Stone Buildings, February 2014


J P Morgan Chase Bank, National Association v Northern Rock (Asset Management) plc – WLR Daily

Posted February 24th, 2014 in agreements, consumer credit, interpretation, law reports by sally

J P Morgan Chase Bank, National Association v Northern Rock (Asset Management) plc [2014] EWHC 291 (Ch); [2014] WLR (D) 83

‘As a matter of construction of section 77A of the Consumer Credit Act 1974, where a creditor had provided the debtor with a statement which failed to set out the information required by the Consumer Credit (Information Requirements and Duration of Licences and Charges) Regulations 2007, the period of non-compliance commenced on a date to be calculated as if no statement had been served at all, and the period of non-compliance began on the day following the last day on which a compliant statement could have been given.’

WLR Daily, 19th February 2014


16-year laptop credit agreement fight reaches supreme court – The Guardian

‘A man embroiled in a mammoth 16-year legal battle over a laptop found himself in the “absurd and horrid” position of having to keep paying for an item he had already returned to the shop, the supreme court has been told.’

Full story

The Guardian, 28th January 2014


16-year legal battle over laptop reaches UK supreme court – The Guardian

Posted January 10th, 2014 in banking, consumer credit, contracts, news, sale of goods, Supreme Court by tracey

‘All Richard Durkin wanted was a laptop with an inbuilt modem. But what he ended up with was an epic 16-year legal tussle, a £250,000 bill for legal fees and, now, a date at the supreme court. The 44-year-old married father of two has been engaged in a David-and-Goliath battle against the bank that he says “annihilated” his credit rating after he walked into his local PC World to buy a £1,500 laptop in 1998.’

Full story

The Guardian, 9th January 2014


ICO fines payday loans company £175,000 over spam messaging –

Posted December 19th, 2013 in advertising, consumer credit, data protection, fines, news, telecommunications by tracey

‘A payday loans company has been fined £175,000 by the Information Commissioner’s
Office (ICO) after the watchdog found it to be in serious breach of UK privacy

Full story, 17th December 2013


In re London Scottish Finance Ltd; Jack and another v Craig and others – WLR Daily

Posted December 19th, 2013 in agreements, consumer credit, law reports by tracey

In re  London Scottish Finance Ltd; Jack and another v Craig and others [2013] EWHC 4047 (Ch);   [2013] WLR (D)  498

‘For the purposes of section 106(d) of the Consumer Act 1974 the words “realisation of the security” should be interpreted conventionally so as to achieve the policy objective stated in section 113(1) that the security provided in relation to a regulated agreement could not be enforced so as to benefit the creditor to any greater extent than would be the case if the security were not provided. In the case of a secured loan to which section 106(d) applied, its provisions did not catch all sums paid by the debtor in discharge of the loan.’

WLR Daily, 17th December 2013


Government to legislate to cap the cost of payday loans –

‘The Government will introduce legislation to cap the cost of payday loans to borrowers, the Chancellor of the Exchequer has announced.’

Full story, 27th November 2013


Dixons Retail plc v Revenue and Customs Commissioners – WLR Daily

Posted November 25th, 2013 in consumer credit, EC law, fraud, law reports, sale of goods, VAT by tracey

Dixons Retail plc v Revenue and Customs Commissioners: (Case C-494/12);   [2013] WLR (D)  448

‘Pursuant to articles 2(1), 5(1) and 11A(1)(a) of Sixth Council Directive 77/388/EEC and articles 2(1)(a), 14(1) and 73 of Council Directive 2006/112/EC, the physical transfer of goods to a purchaser who had fraudulently used a bank card as a means of payment constituted a “supply of goods” within the meaning of articles 2(1) and 5(1) of Directive 77/388 and articles 2(1)(a) and 14(1) of Directive 2006/112 and, in the context of such a transfer, the payment made by a third party, under an agreement concluded between it and the supplier of those goods by which the third party undertook to pay the supplier for the goods sold by the latter to purchasers using such a card as a means of payment, constituted “consideration” within the meaning of article 11A(1)(a) of Directive 77/388 and article 73 of Directive 2006/112.’

WLR Daily, 21st November 2013


Wonga ‘Mr Sandman’ ad banned by Advertising Standards Authority – The Guardian

Posted October 10th, 2013 in advertising, consumer credit, news by tracey

“ASA says ad by payday lender Wonga gave impression that taking out a high-interest loan could be done lightly.”

Full story

The Guardian, 9th October 2013


Payday lenders: FCA proposes tougher controls on adverts and rollovers – The Guardian

“Payday lenders will be forced to make tougher affordability checks under a crackdown by the City regulator that could stop borrowers being given loans within minutes of applying.”

Full story

The Guardian, 3rd October 2013


Payday lenders face new curbs – The Guardian

Posted October 3rd, 2013 in consumer credit, financial regulation, news by sally

“The City regulator is expected to announce a crackdown on advertising by payday lenders and the way the firms collect and extend loans when it announces new rules for the sector on Thursday morning.”

Full story

The Guardian, 2nd October 2013