Is alleging an unfair relationship a necessary pleading of a fact? Fred Philpott examines a recent judgment of the High Court
- In Goldhill Finance Ltd v Smyth, a borrower lost her house on a pleading point because in the county court there was no specific allegation of an unfair relationship, despite fairness having been raised in her original statement.
In what may be seen by some as an unsatisfactory case, a county court judge ruled that the unfair relationship provisions of the Consumer Credit Act 1974 (CCA 1974) only applied if the agreement was regulated. He therefore did not consider the unfair relationship provisions because he was not asked to do so. The case went to appeal in the High Court (Goldhill Finance Ltd v Smyth [2023] EWHC 362 (KB)).
The background
The case involved a bridging loan over six months with interest at 2% per month simple but on default 5% per month compound. The borrower had signed declarations which had the effect (if true, which they were not) of the agreement being unregulated.
