Goods mortgages: updating consumer protection

This article by Christopher Adams was first published in Butterworths’ Journal of International Banking and Finance Law.

In its report ‘Bills of Sale’ published in September 2016 (the Report), the Law Commission recommends that the Bills of Sale Act 1878 (the 1878 Act) and the Bills of Sale Act (1878) Amendment Act 1882 (the 1882 Act) be repealed, and replaced by a new Goods Mortgages Act (GMA), to apply to England and Wales but not to Scotland. The government has accepted the recommendations subject to some qualifications, so after further discussions the Law Commission is likely to introduce a draft GMA Bill into Parliament to come into force by 2019. As well as updating procedures and reducing the complexity of the archaic Victorian legislation, the proposed changes would offer greater protection to consumers. This article examines the ways in which the proposed GMA seeks to address problems under the existing bills of sale legislation for borrowers and third parties, other than trade or finance purchasers, who unknowingly buy goods which have been used to provide security for a loan (private purchasers).

To read the article in full, please see here.

This article forms part of an ongoing series being written by members of the Henderson Chambers Banking Finance and Consumer Credit group for the Butterworths’ Journal of International Banking and Finance Law.