Bank scraps credit card debt in landmark PPI case
Thu, 08 Oct 2009
A county court judge has ruled that £8,000 worth of credit card debt is unrecoverable due to the 'unfair' way in which payment protection insurance (PPI) was sold with the product.

Credit card provider MBNA will be unable to demand repayment because, at the time of purchase, it failed to disclose to the customer it would receive regular commission payments from the insurance provider, ITT London and Edinburgh, a subsidiary of the Aviva insurance group .

Judge Jacqueline Smart resolved that this 'secret' commission rendered the credit card deal unfair and in breach of the Consumer Credit Act . This could lead to a deluge of consumers applying for a debt to be cancelled in cases where PPI has been sold by the lender alongside a loan .

Also, the debt was deemed unenforceable because the card company could not provide a copy of the original loan agreement, which is a requirement under the Consumer Credit Act.
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Critical Illness Cover

Critical Illness Cover

Protect your family should you become seriously ill or disabled.

Critical Illness Cover
Family Income Benefit

Family Income Benefit

Protect the family income with a family income benefit quote.

Family Income Benefit