Lloyds Bank plc v Voller

[Kafka]

TC found this for me

[Amethyst]

Re: Lloyds Bank plc v Voller

THANKYOU Xxx

[natweststaffmember]

Re: Lloyds Bank plc v Voller

Very interesting is paragraph 16(can we have discussion on this case perhaps separate to this thread?):

"16. Mr Voller before us today reiterated the point, made on paper and through counsel to the judge, that he had not
received that documentation. It is a point about which he feels strongly. Whilst, for my part, I have to say that in my
judgment the judge was entitled to make the findings which he made on the balance of probabilities, I hope it is of some
consolation to Mr Voller that speaking for myself those findings are in no sense essential to the outcome of this case or
the decision which the law obliges me to reach. In my judgment, the position is very simple and well established as a
matter of banking law and practice. It is this. If a current account is opened by a customer with a bank with no express
agreement as to what the overdraft facility should be, then, in circumstances where the customer draws a cheque on the
account which causes the account to go into overdraft, the customer, by necessary implication, requests the bank to
grant the customer an overdraft of the necessary amount, on its usual terms as to interest and other charges. In deciding
to honour the cheque the bank, by implication, accepts the offer. It is plain that the account in question, the personal
account, operated for a very substantial period of time, with cheques being drawn by Mr Voller on the overdrawn
account, and the cheques being honoured by the bank. Thus, the only proper conclusion which can be drawn, in the
absence of any evidence that there was a different agreement between Mr Voller and the bank, is that the bank granted
him overdraft facilities at the standard rate for overdrafts. It would have been open to the bank to have charged him the
unauthorised rate but it did not do so."

[Amethyst]

Re: Lloyds Bank plc v Voller

On this thread Nats Lloyds response letter - Legal Beagles