Unfair relationships & pleadings of fact

Is alleging an unfair relationship a necessary pleading of a fact? Fred Philpott examines a recent judgment of the High Court

In Goldhill Finance Ltd v Smyth, a borrower lost her house on a pleading point because in the county court there was no specific allegation of an unfair relationship, despite fairness having been raised in her original statement.

In what may be seen by some as an unsatisfactory case, a county court judge ruled that the unfair relationship provisions of the Consumer Credit Act 1974 (CCA 1974) only applied if the agreement was regulated. He therefore did not consider the unfair relationship provisions because he was not asked to do so. The case went to appeal in the High Court (Goldhill Finance Ltd v Smyth [2023] EWHC 362 (KB)).

The background

The case involved a bridging loan over six months with interest at 2% per month simple but on default 5% per month compound. The borrower had signed declarations which had the effect (if

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Unfair relationships & pleadings of fact

Issue: 8025 / Categories: Features , Procedure & practice , Property

Is alleging an unfair relationship a necessary pleading of a fact? Fred Philpott examines a recent judgment of the High Court

In Goldhill Finance Ltd v Smyth, a borrower lost her house on a pleading point because in the county court there was no specific allegation of an unfair relationship, despite fairness having been raised in her original statement.

The background

The case involved a bridging loan over six months with interest at 2% per month simple but on default 5% per month compound. The borrower had signed declarations which had the

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

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