Dear all,

Suppose a bank overcharges interest on a loan account over a number of
years. This is discovered.

The customer's right to repayment is clear. However, I wonder if
anyone can point me to authority on whether their claim for repayment
is by virtue of an implied term of their loan contract or a
restitutionary claim.

It seems to me, based on authorities like Newland Shipping and
Forwarding Ltd v Toba Trading FZC [2014] EWHC 661 at paragraph 87 and
the speech of Lord Goffe in Pan Ocean Shipping Co Ltd v Credit Corp
Ltd (The Trident Beauty) [1994] 1 WLR 161, at p. 164 that if there is
a right to repayment by virtue of the loan contract, that would
generally exclude a claim in restitution. But this only begs the
question whether there is a right to repayment under the terms of the
loan contract.

I have looked in Padgett and a couple of other texts on banking law
but can find nothing (or am maybe missing it).

Clearly, the customer would also have a separate claim for damages for
breach of contract, possibly damages for misstatement and pursuant to
statute but those claims may be disregarded for the moment.

I'd be really grateful for any comments/views.

Kind regards

Ger