‘Pontearso’ Decision on Bridging Loan Interest Rate

Nugee J has handed down judgment in Greenlands Trading Ltd v Pontearso [2019] EWHC 278 (Ch), on appeal from the decision of HHJ Wulwik that a relationship between a lender and a borrower was not unfair under s 140A of the Consumer Credit Act 1974 . Points that arose were whether a default rate of 3% per month on a six month bridging loan with an interest rate of 1.45% per month was penal and unfair, whether Chubb v Dean [2013] EWHC 1282 (Ch) was good law and whether unfairness is to be assessed objectively even if the borrower does not perceive unfairness. Julian Gun Cuninghame represented the borrower. The Court of Appeal has refused permission to appeal on a second tier appeal.

Decision available here: Greenlands v Pontearso.