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 not a premium under a contract of insurance but a charge under Regulation 4(b) of the 1980 Regulations. The benefit conferred is immediate and not contingent on a future event. The agreement is not unenforceable for the reasons advanced by the claimant.

Citation
[2006] EWHC 3769
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 Judgment After Transfer From County Court; Determination on Witness Statements, No Oral Evidence
Outcome
Claim dismissed
Legal Topics
Enforceability of Regulated Loan Agreements, Characterisation of Mortgage Indemnity Fee, Interpretation of Consumer Credit (total Charge for Credit) Regulations 1980, Application of Consumer Credit Act 1974
Consumer Credit Law Contract Law Enforceability of Regulated Loan Agreements Characterisation of Mortgage Indemnity Fee Interpretation of Consumer Credit (total Charge for Credit) Regulations 1980 Application of Consumer Credit Act 1974

Case Brief

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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 Judgment After Transfer From County Court; Determination on Witness Statements, No Oral Evidence

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 for the purposes of the Regulations
  3. 3 Whether the loan agreement is unenforceable due to mischaracterisation of the MIF

Ratio Decidendi

The mortgage indemnity fee is not a premium under a contract of insurance but a charge under Regulation 4(b) of the 1980 Regulations. The benefit conferred is immediate and not contingent on a future event. The agreement is not unenforceable for the reasons advanced by the claimant.

Court Disposition

Claim dismissed