Podcast Location:
Download it here [file size: 26.2 MB]
Categories:
Consumer Law
Residential Property
CPD Points:
Up to 1 point. details »

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Regulated by the Solicitors Regulation Authority:
Listen and pass the quiz: Gain 1 CPD point (60 minutes)
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Regulated by the Bar Standards Board:
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Regulated by ILEX:
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Cost:
  • FREE
Length:
30 minutes of audio
(+ optional 5 minute online quiz)
Plays on Computer:
Yes Downloadable as MP3:    Yes
Contributor(s):
Course Aims:

This podcast aims to set out the circumstances in which a contractual terms permitting a lender to unilaterally levy charges and change interest rates will be deemed unfair. It will examine the limitations on the courts' powers under the 1999 Regulations and the common law principles that then apply. Analysis will also be made of the numerous industry codes on best practice for lenders and how the provisions of the Consumer Credit Act 1974 apply to protect borrowers.

Outcomes:
After completing the course you will:
  • Know what consumer protection legislation is in place for a mortgagor of residential property;
  • Be aware of the differences between protection for secured and unsecured borrowers;
  • Know when a term in a consumer contract is likely to be unfair;
  • Be aware of the 'grey list' in the 1999 Regulations;
  • Know the limitations on the courts' powers to review the fairness of particular terms;
  • Know what is likely to constitute a 'valid reason' for a bank's unilateral power to levy charges and change interest rates;
  • Know the extent of the common law rules that govern the manner in which such a power should be exercised;
  • Be aware of the role played by the lending industry's own codes of practice;
  • Know what redress is available for consumers through the FSA and Financial Ombudsman Service;
  • Be aware of the potential overlap in protection between the 1999 Regulations and the Consumer Credit Act 1974;
  • Know what is meant by an “unfair relationship” under that statute;
  • Know how regulated mortgage contracts and second charges over residential property are regulated;
  • Be aware of the remedy available to consumers who suffer loss under Financial Services and Markets Act 2000 s150.
Level:
Specialist Difficulty: 5 of 5
Classification:
Case Update
Practical Guide
Sources and References:
  • Unfair Terms in Consumer Contracts Regulationss 1999 (SI. No. 1999/2083) regs.6(2)(b), 5(1), Sch 2, paras. 1(j), 2(b);
  • Financial Services and Markets Act 2000;
  • Consumer Credit Act 1974 ss74, 140A-140D;
  • Office of Fair Trading v Abbey National plc and Others [2009] UKSC 6;
  • Associated Provincial Picture Houses v Wednesbury Corporation [1948] 1 KB 223;
  • Nash & Ors v Paragon Finance Plc [2001] EWCA Civ 1466;
  • Paragon Finance plc v Pender [2005] EWCA Civ 760;
  • Gomba Holdings UK v Homan [1986] 3 All ER 94;
  • Director General of Fair Trading v First National Bank plc [2001] UKHL 52;
  • Office of Fair Trading v Foxtons Ltd [2009] EWCA Civ 288;
  • Al Tamimi v Khodari [2009] EWCA Civ 1042;
  • Statement of Good Practice on Fairness of Terms in Consumer Contracts [2007];
  • Mortgages and Home Finance: Conduct of Business Sourcebook.

In this podcast consumer protection and financial services specialist Malcolm Waters QC looks at the various statutory and regulatory protections for residential mortgagors against a lenders. It examines the Unfair Terms in Consumer Contracts Regulations 1999 and when a terrm giving the lender unilateral powers to levey charges and increase interests rates will give rise to a cause of action in the borrower.

While this podcast is concerned with the protection for mortgagors, borrowers may also be protected by the provisions of the Consumer Credit Act 1974. Consideration will also be given to the many and varied industry codes of practice issued by the FSA and similar bodies.

Podcast added: 20/12/09

Podcast last reviewed: 2011-09-28

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