Thursday, Oct 01, 2009
Court decision could have ramifications for car finance, personal loans and even mortgages
BBC: Court lets woman off £8,000 loan
A decision by a county court judge could mean thousands of borrowers being able to renege on their debts. Judge Jacqueline Smart at South Shields county court has decided that the MBNA credit card company cannot demand the repayment of a customer's debt. IIt tried to force Mrs Lynne Thorius to repay the £8,000 she owed on her card. But the Judge decided there had been an unfair relationship between Mrs Thorius and MBNA because of the way she had been sold payment protection insurance.
Posted by jack c @ 03:39 PM (642 views) Add Comment
3 Comments
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1. dgj said...
When I was applying for a loan years ago with Alliance & leicester (Loan Backed by MBNA I think) the person said I would not be approved unless I took out this payment protection, I said no and the guy continues to add it on anyway, I never even got a letter of confirmation as I think the guy must have just cancelled the application. I had other loan offers so this wasn't a big deal but if it had been my only option I would have been tricked into taking the payment protection...
2. yorkshireman said...
So, £2,500 of the debt was PPI, but how about the other £5,500. The lady has borrowed the money and presumably enjoyed the benefit. She should pay that portion back. Seemd logical to me.
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