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Director General of Fair Trading v First National Bank plc
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Director General of Fair Trading v First National Bank plc : ウィキペディア英語版
Director General of Fair Trading v First National Bank plc

''Director General of Fair Trading v First National Bank plc'' () (UKHL 52 ) is the leading case on the Unfair Terms in Consumer Contracts Regulations 1999. It was an action to test the fairness of clauses in loan agreements which secured a bank's commercial interest rates after a debtor that had defaulted and they had been to court to determine their repayment scheme. The House of Lords held that the clause did not fall within the ambit of reg 6(2) and that it was valid in accordance with the fairness test (reg 5(1)). The case was brought by the Director General of Fair Trading (now the Office of Fair Trading) on behalf of consumers.
==Facts==
Condition 8 of the bank’s standard loan contract allowed the bank to get its standard interest rate after a judgment on repayment when a customer defaulted. Usually lower statutory interest rates apply under the County Court (Interest on Judgment Debts) Order 1991, but this it excluded judgment debts on consumer credit agreements under the Consumer Credit Act 1974. So the bank wanted condition 8 to get the money it would have in interest even after someone had been unable to pay. Under r 8 of the 1994 Reg’s (now r 12) the DG sought an injunction to stop the bank using the term, because it was unfair. Lord Goodhart submitted that the term merely concerned the adequacy of the bank’s remuneration, therefore fell under r 3(2) (now r 6(2)). The DG submitted it was a core term and unfair because complaints were made and the 1991 Order had excluded interest.

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