Using the Law as a Usury Law: Definitions of Usury and Recent Developments in the Regulation of Unfair Charges in Consumer Credit Contracts

摘要

In November 2009, the Supreme Court gave their judgment, in Office of Fair Trading v Abbey National Pic, on whether the appellant banks' overdraft charges could be assessed for unfairness under the Unfair Terms in Consumer Contract Regulations 1999 (the UTCCR). To the disappointment of some, their Lordships overturned the decision of the Court of Appeal, deciding that the charges were part of the price charged for banking services rendered, thus exempting them from an assessment for unfairness under the Regulations. The case is indicative of a wider general inquiry being conducted by the Office of Fair Trading (the OFT) into various aspects of cost and charges levied in relation to banking and credit provision. The regulator has been, for instance, also pursuing a vigorous campaign against unfair charges in relation to borrowing under credit card arrangements, and in relation to other forms of unsecured credit. One aim of this article is to examine these current trends in the OFT's approach to the regulation of costs associated with consumer credit, more particularly in relation to what could be argued as the most significant cost: the price or interest rate. Current activity of the OFT cannot, however, be viewed in isolation.