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The Queen v Kettering Magistrates' Court ex parte M.R.B. Insurance Brokers Limited

Queens Bench Division 8 March 2000

M.R.B, a motor insurance broker, gave to a consumer a credit agreement which gave the APR as 28.3% whereas the true rate was at least 64% - they had failed to take into account an advance payment of £52 nor a compulsory payment of £1 per month for accident cover. They were convicted at the Magistrates' Court of an offence under s.20 of the Consumer Protection Act 1987, and wished to appeal against conviction. They asked the magistrates to state a case for appeal but the magistrates refused, and the company then appealed against the magistrates' decision.

Issues covered in the judgement were

1. whether the rate of 64% was correctly determined - the court were satisfied with the affidavit of Mr Smith, a Trading Standards Officer and output from the Office of Fair Trading's computer program.
2. that a statement of APR is not an indication as to price for the purposes of the Consumer Protection Act - the court disagreed on the basis that "indication" was widely drawn, and there was no doubt that it did have a bearing on the total cost of credit.
3. that s.170(1) of the Consumer Credit Act 1974 prevents any criminal sanction except as provided under that Act - the court held that the purpose of s.170(1) was to clarify the position in relation to the application of the common law to breaches of the Act.

Accordingly, the court refused to grant leave to appeal.