ON APPEAL FROM THE HIGH COURT OF JUSTICE
QUEEN'S BENCH DIVISION
(Mr. Justice Flaux)
Strand, London, WC2A 2LL
B e f o r e :
LORD JUSTICE MOORE-BICK
LORD JUSTICE SULLIVAN
| HSBC BANK PLC
|- and -
WordWave International Limited
A Merrill Communications Company
165 Fleet Street, London EC4A 2DY
Tel No: 020 7404 1400, Fax No: 020 7404 1424
Official Shorthand Writers to the Court)
Miss Sonia Tolaney and Mr. James MacDonald (instructed by Addleshaw Goddard LLP) for the respondent
Hearing dates : 29 November 2010
Crown Copyright ©
Lord Justice Moore-Bick :
"Credit Agreement regulated by the Consumer Credit Act 1974. This Agreement is made between us [the Bank] . . . and You, the Customer(s) named below. Application subject to status."
"This is a Credit Agreement regulated by the Consumer Credit Act 1974. Sign it only if you want to be legally bound by its terms."
"3. Credit Limit
Your credit limit will be determined by us from time to time and notified to you."
The application form
"An agreement is void if, and to the extent that, it purports to bind a person to enter as debtor or hirer into a prospective regulated agreement."
Failure to state essential terms
"2.—(1) . . . documents embodying regulated consumer credit agreements . . . shall contain the information set out in Column 2 of Schedule 1 to these Regulations in so far as it relates to the type of agreement referred to in Column 1.
. . .
6.—(1) The terms specified in Column 2 of Schedule 6 to these Regulations in relation to the type of regulated agreement referred to in Column 1 (and no other terms) are hereby prescribed for the purposes of section 61(1)(a) of the Act . . . "
"The credit limit expressed as:—
(a) a sum of money;
(b) a statement that the credit limit will be determined by the creditor from time to time under the agreement and that notice of it will be given by him to the debtor;
(c) a sum of money together with a statement that the creditor may vary the credit limit to such sum as he may from time to time determine under the agreement and that notice of it will be given by him to the debtor; or
(d) in a case not falling within head (a), (b) or (c) above, either a statement indicating the manner in which the credit limit will be determined and that notice of it will be given by the creditor to the debtor or a statement indicating that there is no credit limit."
"A term stating the credit limit or the manner in which it will be determined or that there is no credit limit."
Lord Justice Sullivan:
Lord Justice Sedley: