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📰 Landmark High Court Ruling Protects Borrowers — Sets the Tone for the Future
Date of Judgment: July 9, 2025
Bank Involved: First Citizens Bank
Presiding Judge: Justice Frank Seepersad
⚖️ Summary of the Decision
In a pioneering ruling, Justice Frank Seepersad determined that First Citizens Bank could not enforce a post‑judgment interest rate exceeding 5%, despite the original loan agreement stipulating a much higher rate of 10.25% per annum. The court found that, once a judgment is entered, the statutory interest rate outlined in the Remedies of Creditors Act (Chap. 8:09) takes precedence—unless a higher rate is explicitly authorized by law or the court itself.
This ruling is a significant affirmation that legal protections cannot be overridden by private contracts, especially when those contracts risk creating long-term financial hardship for vulnerable individuals.
🔍 Why This Matters
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Protects Consumers from Excessive Financial Burden: Borrowers struggling with unemployment, illness, or other hardship are now shielded from the compounding effects of high post-judgment interest.
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Limits the Commercialization of Court Judgments: The court emphasized that judgments must not become profit-making instruments for banks and lenders.
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Reinforces Judicial Oversight: Even when borrowers sign contracts with high-interest terms, the court has the final say on what’s fair post-judgment.
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Sets a National Precedent: This case will likely guide future interpretations and help shape consumer-friendly financial jurisprudence in Trinidad and Tobago.
“This court will not permit its judgment to be used as a product of commercial investment,” — Justice Seepersad
📜 The Legal Framework: Remedies of Creditors Act (Chap. 8:09)
This Act governs how creditors may enforce debt judgments and specifies the maximum post-judgment interest rate. Key provisions include:
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Section 5: A judgment operates as a charge on land once properly registered.
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Section 7–8: Clarifies procedures for registration and enforcement against land.
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Section 13: Limits post-judgment interest to 5% per annum, unless otherwise ordered by the court or varied by law.
👉 View the full Act (PDF): Remedies of Creditors Act, Chap. 8:09 – Unofficial Version
Read the judgement: https://tt.vlex.com/vid/first-citizen-bank-ltd-793934857?.com
📰 Read the Full News Story
Newsday (July 2025): Judge: Bank cannot charge more than 5% interest in loan dispute
By Jada Loutoo :https://newsday.co.tt/2025/07/10/judge-bank-cannot-charge-more-than-5-interest-in-loan-dispute/#:~:text=Justice%20Frank%20Seepersad%20made%20the,the%20Remedies%20of%20Creditors%20Act.
🧭 CAIR’s Perspective
At CAIR, we celebrate this decision as a milestone in consumer protection law. It aligns with our mission to promote fair, transparent, and humane financial practices.
This judgment shows the way forward:
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It restores balance between creditors’ rights and borrowers’ dignity.
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It demonstrates that law and compassion can coexist.
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It signals a shift toward a more just and inclusive financial system in Trinidad and Tobago.
We will continue to monitor related developments and keep the public informed.
📩 Need help understanding your loan terms or facing unfair collection practices?
Please take a moment to complete our survey:
Fair Finance in Trinidad & Tobago: A National Survey on Lending, Repossession & Foreclosure
Your feedback will help us advocate for better consumer protections and fairer financial practices.
Survey: https://docs.google.com/forms/d/e/1FAIpQLSdbyoKfWxFCgoxjUdAi2xaRYUe_1kQrHuJ4XYiUUZj2do_fKQ/viewform?usp=send_form
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