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Ketley
v Gilbert
Mr Ketley was in a road traffic accident involving
Ms Gilbert. Mr Ketley hired a car while his own car was being repaired, this
being on a deferred payment hire agreement (as in Dimond v Lovell above). Unlike that case, the car hire
agreement was written to take advantage of the debtor-creditor-supplier
agreement exemption (where there are no more than 4 repayments within one year).
Mr Ketley sued Ms Gilbert for payment of the car hire charge and lost in the
County Court, this being confirmed in the Court of Appeal. The basis was that
the deferred hire agreement required payment “on the expiry of 12 months”,
whereas the exemption in Article 3 of the Consumer Credit (Exempt Agreements)
Order 1989 required payments to be “within a period not exceeding 12
months…”; there was therefore no valid exemption. Consequently, the loan was
unenforceable against Mr Ketley so he had no claim against Ms Gilbert. |