Multiple Agreements under the Consumer Credit Act 1974: More Good News for Lenders

Consumer credit decisions are like the proverbial bus: following the recent and emphatic judgment in McGuffick1 comes the Court of Appeal's equally emphatic decision in Southern Pacific Mortgage Limited v Jayne Elizabeth Heath [2009] EWCA Civ 1135 ('Heath') on multiple agreements under Section 18 of the Consumer Credit Act 1974 (the 'CC A 1974'). For many lenders, particularly those facing claims by consumers alleging a multiple agreement exists (typically on re-financing where part is used to pay off an old loan with the balance being free to use as the borrower wishes) but has not been properly documented meaning the agreement is irredeemably unenforceable, this decision will come as extremely welcome news.