Connected Lender Liability

In Office of Fair Trading ("OFT") v Lloyds TSB Bank plc, Tesco Personal Finance Limited Ltd and American Express Services Europe ("Respondents") (2006), the OFT appealed against a decision that credit card transactions entered into abroad did not attract connected lender liability under s75(1) of the Consumer Credit Act 1974 (the "Act").

The OFT brought proceedings seeking declarations that for all transactions financed by credit cards issued by the Respondents under consumer credit agreements, the Respondents were subject to connected lender liability under s75(1) of the Act. In cases where a lender provided credit for the purchase of goods and services pursuant to arrangements between himself and the supplier, the debtor who had a claim for misrepresentation or breach of contract against the supplier would have a remedy against the lender as well.