Court stays PPI claims

The High Court has recently stayed two cases, Barnes v Black Horse Limited and McIlquham v Black Horse Limited, pending a decision by the Supreme Court in the major Payment Protection Insurance case of Harrison and Another v Black Horse [2011] EWCA CIV 1128. 

The Harrison case deals with the failure by a lender to disclose to borrowers that it would receive commission for selling them Payment Protection Insurance, and whether this amounts to unfairness within the provisions of the Consumer Credit Act. Thus far, the Courts have come down in favour of the lender, noting that although the level of commission which the lender received from the sale of the PPI was very substantial, this did not give rise to a conflict of interest and the size alone of the undisclosed commission was not sufficient to constitute unfairness. 

Understandably, the decision in the Harrison case will be of significant interest to lenders and PPI claimants alike and it is anticipated that other cases may be stayed pending the Supreme Court's decision, which is expected at some point during 2013.

Posted on: 06/08/2012

This article is for general guidance only. It provides useful information in a concise form. Action should not be taken without obtaining specific legal advice.

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