PPI & Unenforceable Loan Agreements Case Law
Carey v HSBC Bank PLC & others [2009] EWHC 3417 (QB)
A High Court judgement handed down on 23 December 2009 concerning Section 78 requests.
Southern Pacific Personal Loans Ltd v Walker & Anor [2009] EWCA Civ 1176 (12 November 2009)
At first Derek R Halbert Designated Civil Judge, Cheshire held on 12 March 2009 that a loan agreement was unenforceable. SPPL appealed and the appeal was granted.
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Blemain Finnance v Bentley Cardiff County Court - Oct 2009
Case involving the unfair relationships under Section 140A of the Consumer Credit Act 2006. Debtor gets five-year stay on repossession and lender also agreed to charge no further interest on the loan and cut his repayments from £550 to £150 a month
McGuffick v The Royal Bank of Scotland PLC [2009] EWHC 2386 (Comm) (06 October 2009)
This case deals with the adverse reporting to Credit Reference Agencies.
NB It is important to note that the loan agreement was enforceable (as accepted by both sides) and that the client was in arrears before the case started. The bank failed to comply with a section 77 request for the loan agreement. Despite this delay, the bank did, at about the time of the issuing of the claim form, produce a true copy of the credit agreement and was in a position to comply with the statutory request. The judge rejected the contention that making a report to a credit reference agency was intended to be regarded as a method of enforcement.
MBNA –v- Thorius (in the Newcastle-upon-Tyne County Court, September 2009)
MBNA were ordered to either repay the PPI premiums of £2,500 plus interest or the value of the commission it had received. MBNA were also unable to produce a copy of the original signed credit card agreement. The Court therefore held that MBNA could not take enforcement action against Ms Thorius.
Heath v Southern Pacific Mortgage Ltd [2009] EWHC 103 (Ch) (29 January 2009)
Multiply agreements agruement. Lost at appeal.
Other useful reading
London North Securities Ltd v Mr & Mrs Meadows (Court of Appeal [2005] EWCA Civ 956
Watchtower Investments Ltd v Payne & Anor [2001] EWCA Civ 1159 (20 July 2001)