Ratio Decidendi
The non-disclosure of a large commission on a PPI policy created an unfair relationship between the creditor and debtor under s.140A Consumer Credit Act 1974.
Ffeithiau
Mrs Plevin took out a loan with PPI. She was not told that 71.8% of the PPI premium was commission. She claimed the relationship was unfair.
Crynodeb o'r dyfarniad
The Supreme Court held that the failure to disclose the commission made the relationship unfair. The size of the commission and the non-disclosure created an unfair relationship under s.140A.
Dyfyniadau allweddol
"At some point the commissions may become so large as to make the relationship unfair."
— Lord Sumption
Triniaeth ddilynol
Leading Authority
Led to massive PPI mis-selling compensation scheme.