Criminal

Incorrect interest rate stated on regulated consumer credit agreement - interest rate statement constituting 'price indication' - breach of regulatory requirement to state interest rate not precluding criminal liability for giving misleading price indicationR v Kettering Justices, ex parte MRB Insurance Brokers Ltd: QBD (Schiemann LJ and Douglas Brown J): 4 April 2000

The applicant provided credit facilities for payment of motor insurance by means of an instalment payment agreement which was a regulated consumer credit agreement.Contrary to Regulations made under the Consumer Credit Act 1974 the agreement incorrectly stated the interest rate (APR) to be lower than the true rate.The applicant was convicted by justices of giving a misleading price indication by the false APR statement, contrary to s.20(1) of the Consumer Protection Act 1987.

The applicant sought judicial review of the justices' refusal to state a case.Frederick Philpott and Iain Macdonald (instructed by Romain Coleman & Co, Walthamstow) for the applicant.

Karl H Scholz (instructed by Head of Legal Services, Northamptonshire County Council, Northampton) for the prosecutor.Held, dismissing the application, that the APR was an indication as to price for the purposes of the offence of giving a misleading indication as to price under s.20 of the 1987 Act, since the total amount payable under the contract, which could properly be described as the price, would be arrived at by reference to the APR, and a totally false indication was given as to how the aggregate of the sums required to be paid would be determined; that s.170(1) of the Consumer Credit Act 1974, which provided that breach of an agreement made under that Act would not incur a civil or criminal sanction as such a breach except to the extent provided under that Act, did not prohibit criminal liability under s.20 for failure to state a correct APR in a regulated agreement; and that the justices' decision was correct and the application would be dismissed.