ATE and the Consumer Credit Act

According to Litigation Funding for October, in the case of Tilby v Perfect Pizza it is being contended that because ATE insurance premiums are paid at the end of a transaction, the retainer is covered by the Consumer Credit Act 1974 and therefore, unless an agreement is exempted under the Act, it must comply with the Act’s provisions or be unenforceable without an order of the court. The argument is based on the House of Lords’ decision in Dimond v Lovell where it was ruled that a provision that hire charges were not payable until the end of the litigation was the provision of credit.