Greater standardisation of contracts could save lenders thousands in legal fees

Every loan is different, but the way the law treats loans in default is based on a limited number of case precedents.

When designing bespoke contracts therefore, lenders are often ‘designing-in’ a greater likelihood of contractual failure should there be a problem. Furthermore, too few lenders consider the counter arguments from a borrower‘s solicitor when they are contesting the contract.

 

What do you mean the terms of my lending might be “unfair”?

Articles for the ASTL concerning the Consumer Credit Act (Act) may seem an oddity; given the members of the ASTL do not routinely advance regulated debt to consumers.

However, sections 140A-140D of the Act allow any credit transaction where the borrower is a natural person, i.e. not a corporate vehicle, to be varied as a matter of judicial discretion. It is also irrelevant if the debt is unregulated or whether the borrower contracts as a consumer or in a business context. This is why these sections, and the case law that flows from them, have relevance to ASTL members.

Is the short-term lending market robust enough to deal with the fall out from Brexit?

12 December 2018

Blog by Jonathan Newman, Senior Partner at Brightstone Law

 

Chasing shadows in cyber fraud

Fraud cases can read like a movie plot with shadowy figures hacking email accounts, sending fraudulent instructions to banks and syphoning money into accounts around the world, but those ASTL members who have attended our fraud training sessions will know this is the reality of the threat of cyber fraud on any business. Those businesses, including lenders, who routinely transfer large amounts of money, become an obvious target. So, how do you stop the money moving if you don’t know who the enemy is?

Dual representation in short term lending

Is it today's answer for longer completion times; or tomorrow's problem for funders who put cost and process above security?

Blog by Jonathan Newman, Senior Partner at Brightstone Law

   

Practicality of dual legal representation in the short term loan market

Daniel Fireman, Head of Banking & Real Estate Finance at Howard Kennedy LLP, considers the practicality of dual legal representation in the short term loan market

  1. Is there a general equitable duty on a lender to act in good faith?
  2. Unfair relationship? On what basis?
  3. P & P Property Limited –v- Owen White & Catlin and others (“P&P”)
  4. So when do lenders owe duties to borrowers?