Barnes and Another v Black Horse Ltd: QBD 31 May 2011

The claimants sought repayment by the bank of sums paid to them for Payment Protection Insurance policies sold to them in connection with loans made by the bank. The Bank now resisted an application for leave to amend the particulars of the counterclaim to allege that the taking out of the insurance had been made to appear obligatory.
Held: The amendments alleging breach of fiduciary duty were unsupported and bound to fail and were not allowed. Nor was any allegation of breach of a duty of care, and or unenforcability under Unfair Terms legislation, sufficiently set out in the proposed amendments and they too were rejected. Mrs Barnes however could raise the unfair relationship argument against the bank.

Waksman QC J
[2011] EWHC 1416 (QB)
Consumer Credit Act 1974 140A, Unfair Contract Terms Act 1977, Unfair Terms in Consumer Contract Regulations 1999
England and Wales
CitedPatel v Patel QBD 10-Dec-2009
The parties had entered into a loan agreement at a high rate of annual interest but with monthly rests. The court was asked to set aside the agreement as unfair under the 1974 Act. . .
CitedMothew (T/a Stapley and Co) v Bristol and West Building Society CA 24-Jul-1996
The solicitor, acting in a land purchase transaction for his lay client and the plaintiff, had unwittingly misled the claimant by telling the claimant that the purchasers were providing the balance of the purchase price themselves without recourse . .
CitedBritish Bankers Association, Regina (on The Application of) v The Financial Services Authority and Another Admn 20-Apr-2011
The claimant sought relief by way of judicial review from a policy statement issued by the defendants regarding the alleged widespread misselling of payment protection insurance policies, and the steps to be taken to compensate the purchasers. They . .
CitedHarrison v Black Horse Ltd QBD 1-Dec-2010
The claimant sought damages for breach of the statutory duty in ICOB, and for damages for negligence. The bank faced a claim that it had assumed responsibility to take reasonable care in recommending the policy it did. The bank had relied on the . .
CitedBlack Horse Ltd v Speak and Another QBD 21-Jul-2010
The court considered a case involving the selling of payment protection policies by lenders. The defendants said that since the bank had required them to take out the policy, its cost should have been included in the total charge for credit. Since . .

Lists of cited by and citing cases may be incomplete.

Consumer, Banking

Updated: 12 January 2022; Ref: scu.440466