PPI GE Money - they say it's not them.

[Cazziebo]

I've sent the template letters to GE Money (formerly First National Bank). However, they have written back saying as it was the double glazing company who sold me the loan and therefore PPI, I have to address it with them.

 

I'm quite sure they (Living Design) will not be covered by the CCA. Where do I stand now?

[hellhasnofury]

I've sent the template letters to GE Money (formerly First National Bank). However, they have written back saying as it was the double glazing company who sold me the loan and therefore PPI, I have to address it with them.

 

I'm quite sure they (Living Design) will not be covered by the CCA. Where do I stand now?

 

Hello and welcome,

 

Of course they will write back and say it wasn't us, because they would have to take responsibilty in this matter.

 

Ge Money will have paid the double glazing company commission for selling their products. So they all have their finger in the pie.

 

Have a look at this link for information.

visit: FLA E-Recruitment System

Decision in Hurstanger v Wilson

[2007] EWCA Civ 299

This is may be of relevance to all members who pay fees to brokers.

Case Summary

The borrowers (Mr Wilson and Ms Burton) obtained a loan through a

broker. The broker had a fiduciary relationship with the borrowers and

received commission from the lender.

At issue was whether the broker had received secret commission from the

lender and whether informed consent had been given by the borrowers.

The borrowers signed a form which indicated that commission might be

paid but they argued that informed consent had not been given because

they did not know the amount of the commission.

It was held that the broker may only receive commission if the borrower

consented to this with full knowledge of all material circumstances. The

Court of Appeal held that the commission, in this case, was not “secret”

but informed consent had not been given as the amount of commission

had not been disclosed. (Accordingly they awarded the amount of the

commission plus 1.29% simple interest from the date of the agreement’s

inception).

The Court also held that in cases where the broker does not disclose

that she is in receipt of commission from the lender, the commission will be “secret”, the broker potentially guilty of fraud, and the entire loan liable to be rescinded.

Implications

The legal teams of all members who pay commission to brokers should

consider the impact of the decision on their business.

 

Makes interesting reading.

[Cazziebo]

Does this mean I can still pursue GE Money? Or send an initial letter to Living Design?