Court comes down firmly on the side of lenders

United Kingdom

There have recently been two cases, Portman Building Society v Dusangh and Others and AIB Group (UK) Plc v Martin and Gold, in which the Court came down firmly on the side of lenders.

In Portman Building Society v Dusangh and Others (19th April 2000) the Court of Appeal held that Building Societies could not be expected to police transactions.

In AIB Group (UK) Plc v Martin and Gold (8th May 2000) which concerned allocation of monies between partnership and personal accounts, the Court commented that although it is good practice for a bank to attempt to contact the customer to ascertain his wishes regarding the allocation of funds, it is under no legal duty to do so.

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