Money-lenders Act 1900

JurisdictionUK Non-devolved
Citation1900 c. 51

Money-lenders Act, 1900

(63 & 64 Vict.) CHAPTER 51.

An Act to amend the Law with respect to Persons carrying on business as Money-lenders.

[8th August 1900]

B e it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:

S-1 Re-opening of transactions of money-lender.

1 Re-opening of transactions of money-lender.

(1)—(1.) Where proceedings are taken in any court by a money-lender for the recovery of any money lent after the commencement of this Act, or the enforcement of any agreement or security made or taken after the commencement of this Act, in respect of money lent either before or after the commencement of this Act, and there is evidence which satisfies the court that the interest charged in respect of the sum actually lent is excessive, or that the amounts charged, for expenses, inquiries, fines, bonus, premium, renewals, or any other charges, are excessive, and that, in either case, the transaction is harsh and unconscionable, or is otherwise such that a court of equity would give relief, the court may re-open the transaction, and take an account between the money-lender and the person sued, and way, notwithstanding any statement or settlement of account or any, agreement purporting to close previous dealings and create a new obligation, re-open any account already taken between them, and relieve the person sued from payment of any sum in excess of the sum adjudged by the court to be fairly due in respect of such principal, interest and charges, as the court, having regard to the risk and all the circumstances, way adjudge to be reasonable; and if any such excess has been paid, or allowed in account, by the debtor, may order the creditor to repay it; and may set aside, either wholly or, in part, or revise, or alter, any security given or agreement made in respect of money lent by the money-lender, and if the money-lender has parted with the security may order him to indemnify the borrower or other person sued.

(2) (2.) Any court in which proceedings might be taken, for the recovery, of money lent by a money-lender shall have and may, at the instance, of the borrower or surety or other person, liable, exercise, the like powers as may be exercised under this section, where proceedings are taken for the recovery of money lent, and the court shall have power, notwithstanding any provision or agreement to the contrary, to entertain any application under this Act by the borrower or surety, or other person liable, notwithstanding that the time for repayment of the loan or any instalment thereof, may not have arrived.

(3) (3.) On any application relating to the admission or amount of a proof by a money-lender in any bankruptcy proceedings, the court may exercise the like powers as maybe exercised under this section when proceedings are taken for the recovery of money.

(4) (4.) The foregoing provisions of this section shall apply to any transaction which, whatever its form may be, is substantially one of money-lending by a money-lender.

(5) (5.) Nothing in the foregoing provisions of this section shall affect the rights of any bona fide assignee or holder for value without notice.

(6) (6.) Nothing in this section shall be construed as derogating from the existing powers or jurisdiction of any court.

(7) (7.) In the application of this Act to Scotland this section shall be read as if the words ‘or is otherwise such that a court of equity would give relief’ were omitted therefrom.

S-2 Registration of money-lenders, &c.

2 Registration of money-lenders, &c.

(1)—(1.) A money-lender...

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