Fargo Limited v Ecobank Malawi Limited
Fargo Limited v Ecobank Malawi Limited (Commercial Case 101 of 2021) [2023] MWHC 45 (7 December 2023)
The imposition of penalty interest on a secured debt is not commercially justifiable and is unconscionable. The Defendant cannot be compensated through both penalty interest and security. The penalty interest clause is penal and unenforceable; thus, the transaction must be reopened and the outstanding balance recalculated excluding penalty interest.
Source excerpt
- Penalty interest
- Unconscionable conduct
- Loan recovery
- Secured transactions