International records / OpenAlex research

Recovery of interest by banks: a critical examination of Nigerian case law

It is well settled that interest is chargeable only where an agreement expressly or impliedly so stipulates, where statute so provides, or where a mercantile custom to that effect exists. Recovery of interest by banks developed from mercantile customs. These were designed in such a way as to avoid the usury laws which initially outlawed usury but then subsequently allowed interest up to a rate of 10 per cent at the most liberal period before the English Usury Laws Repeal Act of 1854 swept away all restrictions on money lending. Lord Macmillan gave the following account of the recovery of compo…