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Elliott
v Director General of Fair Trading The defendant sent out letters offering credit to
prospective customers, and included a cardboard facsimile of their credit card.
The back of the card indicated that it was valid for immediate use, providing
the customer had a bank account. The letter stated that credit could be obtained
purely by taking the card to the shop, and providing a signature and suitable
evidence of identification. The shop claimed that their promotion was only an
offer to start negotiations for credit, and that a reasonable person would
realise that an agreement would have to be signed and that a method of payment
would require to be agreed. It was held that the defendant had clearly 'undertaken'
to provide credit, even if the assurance of provision was untrue. Completion of
an application form and direct-debiting mandate was covered by the clause,
"Whether or not some other action is also required" in Section
14(1)(a) of the Act. There was thus an offence under s.51 for sending out an
unsolicited credit token. |