The court had held that a bank condition under which interest accrued on a liability regardless of what the court decided was an unfair contract term and not enforceable.
The clause concerned a debt where the bank had started recovery proceeds through the courts. It decreed that interest continued accruing on the debt regardless of what the court decided. This was not acceptable. Once the matter was in the hands of the courts, the court decided how much the defendant could pay, when he must pay it, and what interest may be added.
Director General of Fair Trading v First National Bank plc. CA. The Times 14 March 2000.
[2000.3/6]