Royal Bank of Scotland v Etridge (No2) [2001]

Several conjoined appeals where wife’s interest in
home had secured husband’s debt.
[Banks disliked Barclays suggestion
of meeting wife –
House of Lords needed to offer alternative]
1.  Lender
placed on enquiry whenever one party to cohabiting couple offers to stand
surety for debts of the other.
Includes all cohabiting couples, married or unmarried,
homo or hereto, provided bank knew about relationship.
2.  Bank does
not have to meet wife but must communicate directly with her explaining why
they want her to consult solicitor.
3.  Bank must get consent of husband to supply
full financial details to solicitor.
4.  Solicitor could act for both wife and husband,
or wife and bank, provided no conflict of interest.
5.  Solicitor must advise properly and explain
Most solicitor can do is advise – not his job to look
for undue infl.
However, in exceptional case where transaction clearly
seriously adverse to wife’s interests, solicitor should decline to act further.
6.  Bank must
get cert from solicitor confirming wife understands risks.