PPI mis-selling claims - some good news for banks

Updated October 2011

Does failure to disclose payment of commission render the underlying credit agreement unfair?

No, says the Court of Appeal, following the recent decision in the case of Harrison and Harrison v Black Horse Ltd [2011] EWCA Civ 1128. The taking of an undisclosed commission, no matter how big or small, does not create an unfair relationship.

Similarly, if there is a technical or trivial breach of ICOB (or some other regulatory provision), that should not create an unfair relationship.

Courts must look at the relationship or relationships and see whether the breach causes that relationship or relationships to be unfair as a whole.

This is good news for banks and should help in defending claims alleging an unfair relationship.

We have experience in dealing with these types of claims and can help with any queries you may have.

This publication is intended for general guidance and represents our understanding of the relevant law and practice as at October 2011. Specific advice should be sought for specific cases; we cannot be held responsible for any action (or decision not to take action) made in reliance upon the content of this publication.

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