header-logo header-logo

03 March 2016 / Simon Duncan
Issue: 7689 / Categories: Features , Banking
printer mail-detail

The hungry CAT fallacy

001_nlj_7689_duncan

Simon Duncan reports on class actions in the UK & LIBOR/FX claims

The Consumer Rights Act 2015 introduced a private right for consumers to bring proceedings attacking anti-competitive practices by businesses, such as price fixing. This has been effective since 1 October 2015. Will the new law encourage more class actions to be brought against banks for LIBOR and FX price fixing?

Under the pre-existing regime only a “specified body” could bring a claim to the Competition Appeal Tribunal (the CAT) and that claim restricted to goods or services received outside of the claimants’ business. Only one claim was brought in 12 years, it was The Consumers Association v JJB Sports PLC [2009] CAT 3. In that case Which? (the specified body) sought to recover losses suffered by victims of a replica football kit cartel. Only 130 claimants opted in, a fraction of those affected. Each claimant received compensation but the legal costs significantly outweighed this. Which? then stated that it would not bring any more claims.

New regime

The new regime includes any

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Katten Muchin Rosenman—Charlotte Hill

Katten Muchin Rosenman—Charlotte Hill

Katten strengthens financial markets and funds group in London

Hugh James—Keith Cundall & Lee Hart

Hugh James—Keith Cundall & Lee Hart

Hugh James expands national Serious Injury team with two new Partners

HFW—Rémi Ducloyer

HFW—Rémi Ducloyer

HFW continues Paris office growth with public law Partner hire

NEWS
The Court of Appeal's decision in Mazur v Charles Russell Speechlys LLP has lifted months of uncertainty for Chartered Legal Executives while prompting a rethink of regulation and supervision
The assisted dying debate returns to Westminster as Lauren Edwards MP reintroduces legislation that stalled in the House of Lords last session despite clearing the Commons
A little-noticed provision of the Crime and Policing Act 2026 has fundamentally expanded corporate criminal liability
Artificial intelligence is transforming legal practice, but careless reliance on it is creating growing professional risks
The law offers cohabiting couples surprisingly greater protection after one partner dies than when they separate during life
back-to-top-scroll