McMullon v Secure the Bridge Ltd (Rev 1)

McMullon v Secure the Bridge Ltd (Rev 1)

The relationship arising out of the Credit Agreement was not unfair to the Appellant as she was not misled or unduly influenced, and was determined to obtain the loan; however, the default interest provision at 4% per month was void under sections 93 and/or 173 of the Consumer Credit Act 1974, and only the contractual rate of 1.5% per month pre-judgment was enforceable.

Parties
Appellant: Julie McMullon; Respondent: Secure The Bridge Limited
Jurisdiction
England and Wales
Judgment Date
05 August 2015
Procedural Posture
Civil Appeal / Judgment
Outcome
Appeal dismissed on unfairness; appeal allowed on interest provision.
Legal Topics
Unfair Relationship, Interest Provisions, Regulated Credit Agreements, Conflict of Interest, Enforcement of Credit Agreements
Consumer Credit Contract Law Unfair Relationship Interest Provisions Regulated Credit Agreements Conflict of Interest Enforcement of Credit Agreements

Case Brief

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Parties

Julie McMullon

Appellant

Secure The Bridge Limited

Respondent

Procedural Posture

Civil Appeal / Judgment

Legal Issues

  1. 1 Whether the relationship arising out of the Credit Agreement was unfair under section 140A of the Consumer Credit Act 1974
  2. 2 Whether the default interest provision in the Credit Agreement was void under sections 93 and/or 173 of the Consumer Credit Act 1974

Ratio Decidendi

The relationship arising out of the Credit Agreement was not unfair to the Appellant as she was not misled or unduly influenced, and was determined to obtain the loan; however, the default interest provision at 4% per month was void under sections 93 and/or 173 of the Consumer Credit Act 1974, and only the contractual rate of 1.5% per month pre-judgment was enforceable.

Court Disposition

Appeal dismissed on unfairness; appeal allowed on interest provision.

Orders

  • Default interest provision at 4% per month declared void under sections 93 and/or 173 of the Consumer Credit Act 1974.
  • Interest awarded at 1.5% per month pre-judgment only.