In Barclays Bank plc v L. Londell McMillan [2015] EWHC 1596 (Comm) the High Court considered whether an unfair debtor creditor relationship existed under section 140A of the Consumer Credit Act 1974 (CCA).

Mr McMillan was a US lawyer who had entered a loan agreement with the bank to provide a capital contribution to the law firm in which he was a partner. The law firm filed for bankruptcy and was found to be insolvent, the bank sought to recover the outstanding loans from the partners, including Mr McMillan.  Mr Justice Popplewell, in reaching his decision, considered the observations of Lord Sumption in Plevin as to how the court might apply sections 140A-140C of the CCA and held that the bank had discharged the burden to show that the relationship was not unfair.  He found that a number of factors pointed towards the relationship not being unfair, including the fact that Mr McMillan was not a naïve or vulnerable consumer, therefore the bank could reasonably expect that he would understand the terms of the agreement.

The case can be read in full here.