If You Charge Compensation for Collecting Overdue Debts then You Must be Rational
The long-awaited judgment in the case of BHL v Leumi ABL Limited has been delivered in the Mercantile Court. The High Court found that a lender must be rational when exercising its contractual discretion to charge collection fees under a receivables finance agreement. Whilst the agreement allowed fo...
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| Veröffentlicht in: | Credit Control 2018-01, Vol.39 (1/2), p.8-10 |
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| creator | Cowan, Stephen |
| description | The long-awaited judgment in the case of BHL v Leumi ABL Limited has been delivered in the Mercantile Court. The High Court found that a lender must be rational when exercising its contractual discretion to charge collection fees under a receivables finance agreement. Whilst the agreement allowed for fees of up to 15%, the court said that the maximum chargeable for the lender to remain compliant with its duty was found, in this case, to be 4%. This decision will have an impact on the charging of collection fees and any ongoing disputes, and could also prompt changes to the drafting of such clauses. |
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| fulltext | fulltext |
| identifier | ISSN: 0143-5329 |
| ispartof | Credit Control, 2018-01, Vol.39 (1/2), p.8-10 |
| issn | 0143-5329 2054-9210 |
| language | eng |
| recordid | cdi_proquest_reports_2008329372 |
| source | EBSCOhost Business Source Complete |
| subjects | Agreements Compensation Court decisions Debt Fees & charges Regulation State court decisions |
| title | If You Charge Compensation for Collecting Overdue Debts then You Must be Rational |
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