Griffiths v Welcome Financial Services [2006] EWHC 3769 (QB) (26 July 2006)

Griffiths v Welcome Financial Services [2006] EWHC 3769 (QB) (26 July 2006)

The mortgage indemnity fee is a charge under Regulation 4(b) of the Consumer Credit (Total Charge for Credit) Regulations 1980 and not a premium under a contract of insurance. The benefit conferred by the waiver is acquired immediately upon contract formation and is not contingent on a future uncertain event in the...

Source-derived case information.

Citation
[2006] EWHC 3769 (QB)
Parties
Claimant: Anthony Griffiths; Defendant: Welcome Financial Services
Jurisdiction
England and Wales
Judgment Date
26 July 2006
Procedural Posture
Claim for Declaration and Ancillary Relief Under Consumer Credit Act 1974 / High Court Trial, Judgment
Outcome
Claim dismissed
Legal Topics
Enforceability of Loan Agreements, Characterisation of Mortgage Indemnity Fee, Interpretation of Consumer Credit (total Charge for Credit) Regulations 1980, Contract of Insurance Definition
Consumer Credit Contract Law Financial Regulation Enforceability of Loan Agreements Characterisation of Mortgage Indemnity Fee Interpretation of Consumer Credit (total Charge for Credit) Regulations 1980 Contract of Insurance Definition

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Summary, issues, holding and outcome

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Parties

Anthony Griffiths

Claimant

Welcome Financial Services

Defendant

Procedural Posture

Claim for Declaration and Ancillary Relief Under Consumer Credit Act 1974 / High Court Trial, Judgment

Legal Issues

  1. 1 Whether the mortgage indemnity fee (MIF) should be included as part of the amount of credit or as a charge under the Consumer Credit (Total Charge for Credit) Regulations 1980
  2. 2 Whether the MIF constitutes a premium under a contract of insurance within the meaning of the Regulations

Ratio Decidendi

The mortgage indemnity fee is a charge under Regulation 4(b) of the Consumer Credit (Total Charge for Credit) Regulations 1980 and not a premium under a contract of insurance. The benefit conferred by the waiver is acquired immediately upon contract formation and is not contingent on a future uncertain event in the sense required for insurance. The agreement is therefore enforceable and the claim fails.

Court Disposition

Claim dismissed