Wilson & Anor v Hurstanger Ltd

Wilson & Anor v Hurstanger Ltd

The loan agreement contained the prescribed terms as required by the Consumer Credit Act and was enforceable. The payment of commission to the broker was not secret due to partial disclosure, but the defendants' informed consent was not obtained, amounting to a breach of fiduciary duty. The appropriate remedy was equitable compensation, not rescission.

Parties
Defendant/appellant: Wilson; Defendant/appellant: Burton; Claimant/respondent: Hurstanger Ltd
Jurisdiction
England and Wales
Judgment Date
04 April 2007
Procedural Posture
Civil Appeal / Judgment on Appeal From Coventry County Court
Outcome
Both consumer credit appeals dismissed; appeal on secret commission allowed in part.
Legal Topics
Consumer Credit Agreements, Secret Commissions, Fiduciary Duty, Disclosure Requirements, Rescission, Equitable Compensation
Consumer Credit Law Equity Contract Law Consumer Credit Agreements Secret Commissions Fiduciary Duty Disclosure Requirements Rescission +1 more

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Parties

Wilson

Defendant/appellant

Burton

Defendant/appellant

Hurstanger Ltd

Claimant/respondent

Procedural Posture

Civil Appeal / Judgment on Appeal From Coventry County Court

Legal Issues

  1. 1 Whether the loan agreement contained the prescribed terms under consumer credit legislation
  2. 2 Whether the payment of commission to the broker constituted a secret commission and breach of fiduciary duty
  3. 3 Whether the defendants were entitled to rescission or equitable compensation

Ratio Decidendi

The loan agreement contained the prescribed terms as required by the Consumer Credit Act and was enforceable. The payment of commission to the broker was not secret due to partial disclosure, but the defendants' informed consent was not obtained, amounting to a breach of fiduciary duty. The appropriate remedy was equitable compensation, not rescission.

Court Disposition

Both consumer credit appeals dismissed; appeal on secret commission allowed in part.

Orders

  • First defendant awarded £240 plus simple interest at 1.29% per month from 5 August 2003, liability to both defendants.
  • No order for rescission of the loan agreement or legal charge.