ARROW v FROST-Success for Debt Purchasers

In Arrow Global Guernsey Limited v Frost [2013] EW Misc 27 (CC) Mr Recorder Monty QC awarded judgment to Arrow in a claim for monies owed on a credit card.

The rights under the credit card agreement had been assigned by the original creditor to Arrow.  The Defence alleged the creditor had breached a number of obligations under the Consumer Credit Act (“the CCA”). 

The original credit card agreement (containing the customer’s signature) could not be located.  However, Mr Recorder Monty accepted the evidence provided by Arrow that the credit agreement had been correctly reconstituted by the original creditor.  The Judge also ruled the obligation under Section 78 had been complied with and disapproved of the ruling in HFO Capital Limited v Robertson.

The Court accepted the account had been properly terminated by a default notice which allowed the required number of days for compliance.  Importantly, the Court ruled that it was, in any event, prepared to apply the “de minimis” principle referred to by the Court of Appeal in American Express v Brandon to the default notice.  Accordingly, even if the default notice had not allowed the 14 day period this was only a minor breach and as it had not caused any prejudice to Mrs Frost could not render the default notice defective. 

In a wide ranging judgment Recorder Monty also accepted that the contact (and attempted contact) by the creditor did not constitute harassment even though Mrs Frost had requested that telephone contact should cease.  In view of the earlier Court of Appeal decision in Roberts v Bank of Scotland [2013] EWCA Civ 882 this is a welcome ruling on what constitutes reasonable/unreasonable activity.

For further information please contact Jeremy Bouchier, Senior Solicitor who represented Arrow Global Guernsey Limited in the above case.


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