Houssein v London Credit Ltd

On remission from the Court of Appeal, the court held that a default interest rate of 4% per month compounding (against a contractual rate of 1% per month simple) on a bridging loan was not an unenforceable penalty, because the lender had a legitimate interest in the various risks the default rate protected against and the rate, though high, was not extortionate or out of all proportion to that interest.