High Court judgment on Northern Rock agreements wrongly drafted as regulated

The High Court today handed down judgment in NRAM PLC v McAdam [2014] EWHC 4174. Read the judgment here nram-plc-v-mcadam-hartley

NRAM sought a declaratory judgment in relation to loans made between 1999 and March 2008 which, although they were above the applicable financial limit, were written on CCA regulated forms. NRAM wanted to know whether it was obliged to compensate borrowers under such agreements for failures to comply with the requirements of s.77A CCA (the requirement to provide periodic statements). Mr Justice Burton concluded that the rights and remedies in relation to s.77A were imported into each agreement. This ruling runs counter to opinions expressed in the leading texts. There have been indications in the press that NRAM may be considering an appeal.

For full article see chambers’ Practical Law column here.

Fred Philpott of Gough Square has also published an article on this decision in the New Law Journal: NLJ (2015) Vol. 165 No.7640 page 18.

Update: permission to appeal to the Court of Appeal has now been granted to NRAM; the appeal will be heard over two days in the Easter term