Nelmes v NRAM Plc

Nelmes v NRAM Plc

The relationship between NRAM and Nelmes was unfair to the extent that NRAM paid an undisclosed procuration fee to Nelmes' broker, depriving Nelmes of disinterested advice. However, in all other respects, including the loan terms, enforcement actions, and inclusion of the home in the security, the relationship was not unfair under section 140A. The only relief granted was an order for NRAM to account to Nelmes for the procuration fee plus interest.

Parties
Appellant: Thomas Nelmes; Respondent: NRAM PLC
Jurisdiction
England and Wales
Judgment Date
26 May 2016
Procedural Posture
Civil Appeal / Appeal Judgment
Outcome
Appeal allowed in part
Legal Topics
Unfair Relationship Under Consumer Credit Act, Undisclosed Commission/procuration Fee, Loan Agreements, Appointment of Receivers, Breach of Loan Terms, Valuation Disputes
Banking and Finance Law Contract Law Consumer Protection Unfair Relationship Under Consumer Credit Act Undisclosed Commission/procuration Fee Loan Agreements Appointment of Receivers Breach of Loan Terms +1 more

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Parties

Thomas Nelmes

Appellant

NRAM PLC

Respondent

Procedural Posture

Civil Appeal / Appeal Judgment

Legal Issues

  1. 1 Whether the relationship between the creditor (NRAM) and debtor (Nelmes) was unfair under section 140A of the Consumer Credit Act 1974
  2. 2 Whether undisclosed procuration fees rendered the relationship unfair
  3. 3 Whether the appointment of receivers and enforcement actions were unfair

Ratio Decidendi

The relationship between NRAM and Nelmes was unfair to the extent that NRAM paid an undisclosed procuration fee to Nelmes' broker, depriving Nelmes of disinterested advice. However, in all other respects, including the loan terms, enforcement actions, and inclusion of the home in the security, the relationship was not unfair under section 140A. The only relief granted was an order for NRAM to account to Nelmes for the procuration fee plus interest.

Court Disposition

Appeal allowed in part

Orders

  • NRAM to account to Nelmes for all undisclosed procuration fees paid to his broker, plus interest from the date of payment.
  • No further relief granted; all other claims dismissed.