The Non Disclosure Of Payment Protection Insurance Commission by Bank Employees is Unfair

May 8, 2015
by admin in PPI News

If you have a signed contract from a financial institution after purchasing your payment protection insurance but you weren’t aware you purchased it, you’re in luck. You could file a PPI claim based on the fact that the existence of PPI was not disclosed to you.

The Consumer Credit Act of 1974 said that the non-disclosure of commission was unfair to consumers because brokers have a conflicting interest and can profit out of the trust reposed by the consumers to the broker.

Should he have disclosed the commission amount, he need not to refund his commission. The court said that Norton owed such a duty to the consumers.

But the argument is that the lending industry proceeds on an almost-consistent basis that credit brokers do not need to disclose their commission to consumers. The assumption is now overturned. If the bank employee did not disclose their commission to the consumer and did not ask for the insurance policy, then it could be considered refundable.