Consumer credit relationships: protection, self interest/reliance and dilemmas in the fight against unfairness: the unfair credit relationship test and the underlying rationale of consumer credit law

The new UK regulatory structure for financial services is now firmly in place. This brings with it changes to the consumer credit regime, both in terms of regulation and supervision. The unfair credit relationship is a sanction contained in the Consumer Credit Act, and its future may well be subject to review as further reform to the UK regulation is actioned. This article provides a fresh examination of the test’s developing role in relation to protecting borrowers against unfairness and its application by the courts. The question is then posed as to whether evidence of underlying ‘competing’ ethics in both case law and statutory policy suggests the test will no longer be appropriate in the control of unfairness in relation to the credit consumer, when changes to the legislation and regulatory framework are concluded.