Smith and another v Royal Bank of Scotland [2023] UKSC 34

Smith and another (Appellants) v Royal Bank of Scotland plc (Respondent) Case ID: UKSC/2022/0004 https://www.supremecourt.uk/cases/uks... Judgment date: 4 October 2023 Neutral citation: [2023] UKSC 34 On appeal from: [2021] EWCA Civ 1832 Issue: This appeal concerns the proper interpretation of section 140A of the Consumer Credit Act 1974. The key issue is whether, in assessing the fairness of a relationship between a debtor and a creditor, the court can compartmentalise the relationship and, accordingly, consider whether the relationship is unfair at a given point, rather than at the end of the relationship. Facts: The appeal arises from two separate claims for compensation under the Consumer Credit Act 1974, each brought on the ground that an unfair relationship arose between the claimant debtor and the defendant creditor. The allegation in each case is that an unfair relationship arose by reason of RBS’s non-disclosure of commission received from the insurer in respect of payment protection insurance (“PPI”) policies taken out at the same time as agreements for credit cards from RBS. The claimant in each case succeeded at first instance before a District Judge, and on first appeal to a Circuit Judge. The Court of Appeal heard appeals in both cases together. The Court of Appeal allowed the appeals and dismissed the claims. The claimants now appeal to the Supreme Court. Judgment: The Supreme Court unanimously allows the appeals, holding that both claims were brought before the relevant time limit expired. The orders made in the county court in each case are, therefore, restored. Lord Leggatt, with whom the other Justices agree, gives the leading judgment. Lord Hodge gives a concurring judgment. More information is available on our website: