Nobody downloaded yet

The case of The Office of Fair Trading vs Abbey National Plc & Others - Literature review Example

Comments (0) Cite this document
The case of The Office of Fair Trading (Respondents) v Abbey National plc & Others (Appellants). Exercise 1 The Court of Appeal case, (2009) EWCA Civ 116) was before Lord Philips, who was the President, and four other Law Lords: Lord Walker, Lady Hale, Lord Mance, and Lord Neuberger…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.3% of users find it useful
The case of The Office of Fair Trading vs Abbey National Plc & Others
Read TextPreview

Extract of sample "The case of The Office of Fair Trading vs Abbey National Plc & Others"

Download file to see previous pages The appeal starts by Lord Walker. In The appeal, the Supreme court was to give a verdict as whether the OFT should go ahead and undertake investigations to find out if the charges “the Banks”, which were the appellants, made for unauthorized overdrafts by their customers were fair. At the moment, banks provided retail banking services on grounds that customers’ accounts that lend the bank money are excluded from paying charges to the bank for services offered. Customers whose accounts had authorized overdrafts only paid charges for the money they borrow “the Banks”. Customers whose accounts had unauthorized overdrafts, however, paid interest on money borrowed besides paying fixed fees for every service they received from “the banks”. The Office of Fair Trading holds investigative powers on consumer contracts’ fairness terms. The power of the Office of Fair Trading, however, has limitations bound to it. The limitations stipulated in the Unfair Contract Terms, in Consumer Regulations 1999. The Unfair Contract Terms, in Consumer Regulations 1999, implemented European Council Directive 93/13/EEC. The directives help protect customers and ensure a favorable business environment for fair trading. OFT has the mandate on undertaking this. The provisions regulation 6 (2) (b) give way for evaluate trading activities of a business enterprise or organization. OFT scrutinizes the activities so as to determine the level of fairness of the activities. The OFT scrutinizes contracts and customer satisfaction to determine their fairness. In the case the court of appeal did hold the point of exclusion in the case only to the contracts’ “core terms”. The court excluded ancillary terms as charges for unauthorized overdrafts on reasons that the charges were within the exclusion. The charges, according to the court, were part of the charges for banking services provided. At first instance ([2008] EWHC 875 (Comm), and in the Court of Appeal, OFT was successful. Under the Unfair Terms in Consumer Contracts Regulations 1999, the Office of Fair Trading wished to conduct an investigation on “the Banks’” relevant terms in their contracts with customers by imposing charges on customers whose accounts had unauthorized overdrafts. The Office of Fair Trade hold mandate to undertake the investigation, notwithstanding regulation 6 (2) (b).The decision of both the High Court and the Court of Appeal that regulation 6 (2) (b) could not deter the OFT from doing the investigation made “the banks” to file appeal. Lord Walker emphasized the lack of decision on the fairness of the system of charging current account customers with unauthorized overdrafts. The court could only decide on the investigative mandate of the OFT (para 3). Lord Mance reaffirmed the investigative roles of OFT (para 61). Determining whether charges were consisted ‘cost and revenue’ as against ‘the goods or services distributed in exchange’ within the meaning of the Regulations was the main point to decide on. First, charges were ‘in exchange’ for the transactions to which they relate should the customer have inadequate funds to do so (Para 75). Secondly, regulation 6 (2) (b) no longer had a standing to the “ancillary” charges in the binding form (Paras 38-41, 47, 78, 112)1. In his reasoning, Lord Mance stated that, if in case the contracts were to serve as the package, then the charges levied would be fair. He further states that the charges ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“The case of The Office of Fair Trading vs Abbey National Plc & Others Literature review”, n.d.)
The case of The Office of Fair Trading vs Abbey National Plc & Others Literature review. Retrieved from
(The Case of The Office of Fair Trading Vs Abbey National Plc & Others Literature Review)
The Case of The Office of Fair Trading Vs Abbey National Plc & Others Literature Review.
“The Case of The Office of Fair Trading Vs Abbey National Plc & Others Literature Review”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The case of The Office of Fair Trading vs Abbey National Plc & Others

Edward abbey

...? of the of the Edward Abbey Edward Abbey is considered a very renowned and essayist in nature writing. He was born in Pennsylvania on January 29, 1927 and this was where he attained his early education. He left his home at the age of seventeen and travelled across vast desert lands to explore the American Southwest. The trip made everlasting memories on his mind, bringing him very close to nature. At the age of eighteen, he joined military and served for two years in Italy. Abbey attended University of Mexico in 1951, where he did B.A. in Philosophy and English and also completed his masters in Philosophy. Abbey’s writings are inspired from his life experiences. Desert...
1 Pages(250 words)Essay

Individual Privacy vs. National Security

...?Running head National security vs. personal privacy Latisha Mitchell Matthew Minicucci ENG 122 February 27, Individual privacy vs. national security Individual privacy vs. national security is a current debate topic that has attracted a lot of controversy from various stakeholders. National security is paramount to both the people as well as the federal government. The relationship between individual privacy and national security is the basis of the controversies surrounding the topic. Although this topic is concerned with current issues that are of public concern, it is a wide topic. The importance of...
7 Pages(1750 words)Research Paper

Southwest trading company-finance case

...? Southwest trading company-finance case Introduction Credit analysis is a decisive factor when it comes to financing. Through credit analysis, a bank eliminates all the possible and meaningful circumstances that may lead to a loss. The process is also significant because financial institutions can use it to reconstruct an untenable loan application into a strong one when all other factors indicate the borrower is strong (Koch and MacDonald 599). The whole process of credit analysis brings out all the information necessary to determine the borrower’s credit worthiness. This is in terms of ability and commitment to repay the loan in accordance to the set terms. When entrepreneurs write a proposal and are in real need of the finance... , the...
4 Pages(1000 words)Case Study

Marketing Communication Project for Abbey National

...) Exhibition and trade fairs are considered to be a more personal communication tool. Demonstrations, one-to-one contact with the prospective customers, direct selling and public relations are part of this tool. This is a highly influential communication tool, where a prospective customer can be pursued and a direct sale may be accomplished. It gives an opportunity to improve brand awareness. It generates feedback about other communication tools. It also can be used as a measurement tool of the effectiveness of other communication tools. For Abbey, we have decided to use this tool as our financial products can be sold directly to the customers. The...
12 Pages(3000 words)Essay

Fair Trading

...criminal. The cartel offence clause can make some monopolistic activities liable to criminal prosecution. OFT gives priorities to cases of cartel offence and if found involved in a cartel, your business can face serious charges. The Fair Trading Act had initially granted power to Competition Commission for making monopoly references. However under Enterprise Act 2002 those powers have been assigned to Office of Fair Trading, which can now work as a statutory body in tandem with a Board. The Competition Commission is still an important body in this connection as it had the power to investigate monopolies on direction of Director of...
4 Pages(1000 words)Assignment


...of the economically deprived families depend upon for their livelihood. Considering the above outlined changes in purchasing practices which may result in if Tesco adopts an utilitarian approach in selecting the ethically correct course of action, "the greatest good for the greatest number" will become not a mere utilitarian motto but a viable reality. Tesco’s Human Rights Policy outlines its policy on treatment of employees and claims to have been drawn up to uphold the basic human rights and supports in full the United Nations Universal Declaration of Human Rights and the International Labour Organisation Core Conventions. Tesco is also a founding member of Ethical Trade Initiative since its...
10 Pages(2500 words)Essay

Abbey Bank

...- It will contribute to competitive advantage - It will lay the ground for implementation. In 2003, as a result of market research, Abbey set about simplifying its products to provide a range of easy to understand products and services. This initiative followed on from Abbey’s attempt at diversification into other financial products and markets that had resulted in substantial financial loses for the company, then trading as Abbey Nationalplc. The most important change involved taking a new, critical look at this over-complex market. Abbey uses a range of methods to communicate with its...
18 Pages(4500 words)Essay

Fair value vs. Historical cost

...FAIR VALUE AND HISTORICAL COSTS The purpose of this paper is to discuss the concept of the fair value with respect to the historical costs.For the comparison of both, the paper analyzes two different companies and deduces how a certain accounting method has led it to achieve reliability and neutrality. Introduction Fair Value Fair value is defined to be the money that is needed for a transaction that has to occur between two parties that are knowledgeable and willing. The transaction should be the buying or the selling of an asset. (Heffes, 2008) The formulation of the definition is done is such a manner that it differentiates the fair value as the...
4 Pages(1000 words)Research Paper

Fair is Fair case established (Simmons, 20). The principle of fairness applies where both parties in a dispute perceive the verdict as having not favored any side of the argument. While justice could rest on side of the case, fairness must be established with the interest of both parties in mind. Thus, although justice could stand on certain premises, which could be seen to be favoring either side of the argument, fairness stands as the middle ground between the disputing parties, ensuring that none will perceive the other party as having benefited more from the case (Simmons, 24). Therefore, fairness goes beyond just doing justice, by...
1 Pages(250 words)Case Study

Case Study: Abbey Plc

...of Abbey Plc are an area that requires substantive audit procedures. The significant increase in the trade receivables by 13,083,000 pounds equivalent to a 240.1% increment over the previous year requires investigation. The auditor should investigate the debt collection policies and make debtor circularisation to ascertain that the amounts recorded in financial statements are correct. There has been a material increase in trade payables. The numbers increased from the 25,577,000 pounds reported in 2013 to 33,643,000 pounds in 2014. The increase in trade payables should be traced to the nominal ledgers to ascertain their accuracy and completeness. The...
6 Pages(1500 words)Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Literature review on topic The case of The Office of Fair Trading vs Abbey National Plc & Others for FREE!

Contact Us