17 March 2021
A recent Court of Appeal decision has highlighted the risk that settlement agreements could inadvertently become subject to consumer credit regulation, and thus rendered unenforceable.
Robin Kingham explores the implications of CFL Finance v Gertner in NLJ this week, commenting that: ‘The all-important question in Gertner was whether the payment of settlement sums in instalments provided “financial accommodation” within the meaning of section 9(1) of the Consumer Credit Act 1974’. If so, the settlement agreement would amount to ‘credit’, and would therefore fall within the Act’s scope.
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