The Court of Appeal yesterday upheld the High
Court decision in the much documented case of Harrison v Black
Horse.
Black Horse lent the Harrisons £60,000 and
sold them PPI for £10,200, the commission on which was 87% of the
premium. The Harrisons claimed this was unfair.
Go deeper with GlobalData
Greg Standing, a partner in Wragge & Co’s
finance litigation team and an expert on defending lenders against
such claims said: “In essence the Court of Appeal found that Black
Horse met the standard imposed by the FSA through its ICOB rules
and that it would be anomalous if it were the case that it was
necessary to disclose the commission to comply with the Consumer
Credit Act, yet not necessary to comply with ICOB rules.”
The Court of Appeal also said that even though
the commission was large there was no basis to distinguish PPI from
the sale of other products where sellers have no obligation to warn
that the products are expensive.
Standing continued: “This is a very positive
decision for all lenders who will need to review strategy for
dealing with alleged PPI mis-selling cases. Obviously it’s a
huge blow for CMCs.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
