'Landmark' PPI case as bank scraps £8k credit card debt

Credit card provider MBNA cannot 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 decided this ‘secret' commission rendered the credit card deal unfair and in breach of the Consumer Credit Act. This could open the floodgates of consumers applying for a debt to be cancelled in cases where PPI has been sold by the lender alongside a loan. The debt was also deemed unenforceable beca...