Default, Default, Default: High Court Gives Judgment on Default Notices and Default Charges under Regulated Consumer Credit Agreements

    September 2010

    His Honour Judge Roderick Denyer QC, sitting as a judge of the High Court, handed down judgment recently in American Express Services Europe PE Limited v Ian Karl Robert Brandon [2010], Unreported, 25 May 2010, on two key issues which often arise in consumer credit litigation: firstly, whether the default notice served under Section 87 of the Consumer Credit Act 1974 (the "CCA 1974") was invalid; secondly, whether the default charges amounted to penalties. This extremely helpful judgment, and given its High Court status meaning it is binding on the County Court, will no doubt comfort lenders facing such allegations.