£15k Mercantile Court Consent Order

[Will Scarlet]

I know someone who has been fighting a case with Natwest / Cobbetts for some time on behalf of someone he mentors in business. It came to the crunch on Tuesday in the Mercantile Court in London where Cobbetts turned up mob-handed which included someone from Natwest and, seeing that all parties were present, a deal was struck. The claim totalled around £21k which was made up of charges, interest, CI and professional fees (charges from memory were in the region of £7-10k).

The judge has written a "Consent Order" and I have a copy of it (hand-written by the judge).

Would the information contained in this document hold any weight in future claims against NW / Cobbetts? They have basically settled at all charges + CCA @ 8% + professional fees. The CI was discussed and the judge seemed to think that he would find something in NW's T&C's that allowed them to charge it so it was not argued (I still think it is worth arguing on the principle of mutuality and reciprocity and on the basis that the UTCCR would override any contractual clause that was unfair towards the consumer ie. if the bank can charge for unauthorised borrowing why can't the client do the same...)

Whilst I am sure this by no means sets any kind of precedent it is a fairly healthy victory all the same. Could it be used / quoted in future cases?

[Bookworm]

Not if they settled "amicably", no, except as in yet another example that they don't want a precedent set pretty much at all costs. The "uneconomical to go to court" excuse wears a bit thin...

[caro]

I still think it is worth arguing on the principle of mutuality and reciprocity and on the basis that the UTCCR would override any contractual clause that was unfair towards the consumer ie. if the bank can charge for unauthorised borrowing why can't the client do the same...)

 

I don't agree and this order makes my belief stronger. Just my opinion.

[Will Scarlet]

Caro - thanks for your comments. In some ways I agree with you, I've always seen CI as pushing the boat out a bit but as my mother always told me, "If you don't ask, you don't get". In this particular case the claimant was happy to settle and did not want to push any more, at the end of the day £15k isn't a bad result. What I have noticed is that in smaller value cases, say sub-£1500, CI is being paid without question. I know of 5 cases with a certain bank last week, 4 of which were sub £1500 and paid out in full including CI and 1 which was over £1500 where they offered and paid 8% CCA as a compromise and said they would get a stay of judgement and argue the CI. The most important thing is that people are winning, whether it's 8% or CI it's still happy days all round!

[caro]

I agree with your Mum about not getting if you don’t ask, but I also think two wrongs don’t make a right. How can we justify saying the bank are being unreasonable charging ridiculous rates of interest and then turn request they pay it too.

 

We can get back the interest they charge on our unlawful charges, even if we don’t go to court, and there are precious few places you will get an 8% return on an investment. Don’t get me wrong, if I thought there was a basis in law for claiming CI, I would go for it, and if offered it, I’d accept. I’m not an idiot (allegedly).

 

An interesting point about smaller claims getting CI more readily, but in my opinion it would be foolhardy to reject a settlement for charges plus 8% and going to court for the CI on larger claims.

 

The most important thing is that people are winning, whether it's 8% or CI it's still happy days all round!

I couldn’t agree more.