Thursday, October 13, 2011
Harrison judgement “huge blow” for CMCs
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.
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.
DATED: 13.10.11
FEED: MF
