Unfair Contract Terms,Unfair Prices and Bank Charges

This note considers how the Unfair Terms in Consumer Contracts Directive 1993 draws the line between the review of unfair contract terms and the review of unfair contracts (and, in particular, unfair prices) in the context of two cases concerning bank charges: Abbey Life plc v The Office of Fair Trading (2009) (the Bank Charges case) in the UK Supreme Court and Case 484/08 Caja de Madrid (2010) in the European Court of Justice. The note explains the proper question to be addressed by a court for this purpose under article 4(2) of the Directive and criticises the Supreme Court's approach to the interpretation of article 4(2) and its application of the UK regulation implementing this article to the circumstances in the Bank Charges case.