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Unfair contract terms

Is borrower a consumer?

Early repayment charge

Evans v Cherry Tree Finance Limited
[2008] EWCA Civ 331

Summary

In this case the CA looked at the application of the Unfair Terms in Consumer Contracts Regulations 1999 to mortgage cases. The Regulations apply to contracts concluded between a seller or supplier and a consumer, and for these purposes ‘consumer’ means “a natural person…acting for purposes which are outside his trade, business or profession”. But how do you identify the purpose and what if there are mixed purposes? It was held that the claimant borrower was a consumer and that a term providing for payment of a substantial early redemption penalty in a secured credit agreement made between the claimant and the defendant lender was unfair.

Facts

C and his wife jointly owned a property from which they carried on an antiques restoration business in partnership. Some of the rooms on the first floor were used as reside ... THIS IS AN EXTRACT OF THE FULL TEXT. TO GET THE FULL TEXT, SEE BELOW

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