Evans v Cherrytree Finance Ltd

Evans v Cherrytree Finance Ltd

Clause 1.8 of the loan agreement is unfair under the 1999 Regulations as it is opaque, not explained, and results in a significant imbalance to the detriment of the consumer. The Rule of 78 calculation and six months' deferment are not binding. The claimant is entitled to judgment for the sum paid in excess of the outstanding principal, arrears, and agreed administration fees.

Parties
Claimant: Andrew Simon Evans; Defendant: Cherrytree Finance Limited
Jurisdiction
England and Wales
Judgment Date
13 April 2007
Procedural Posture
Civil / Trial Judgment
Outcome
Judgment for the claimant
Legal Topics
Unfair Contract Terms, Consumer Credit, Mortgage Redemption, Penalty Clauses
Contract Law Consumer Protection Unfair Contract Terms Consumer Credit Mortgage Redemption Penalty Clauses

Case Brief

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Parties

Andrew Simon Evans

Claimant

Cherrytree Finance Limited

Defendant

Procedural Posture

Civil / Trial Judgment

Legal Issues

  1. 1 Whether Clause 1.8 of the loan agreement is unfair and unenforceable under the Unfair Terms in Consumer Contracts Regulations 1999
  2. 2 Whether the Rule of 78 calculation for early redemption is binding on the claimant
  3. 3 Whether the administration fee is enforceable at the rate charged

Ratio Decidendi

Clause 1.8 of the loan agreement is unfair under the 1999 Regulations as it is opaque, not explained, and results in a significant imbalance to the detriment of the consumer. The Rule of 78 calculation and six months' deferment are not binding. The claimant is entitled to judgment for the sum paid in excess of the outstanding principal, arrears, and agreed administration fees.

Court Disposition

Judgment for the claimant

Orders

  • Defendant to return any sum paid by the claimant on redemption in excess of the outstanding principal, arrears, and administration fees at £125 per month.
  • Precise sum to be agreed by counsel or determined by the court if not agreed.