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Consumer finance regulatory news, April 2021 # 2 | Hogan Lovells jdsupra.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from jdsupra.com Daily Mail and Mail on Sunday newspapers.
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st April 2021 5:45 pm
A judgment by the Court of Appeal yesterday has made it much more likely that borrowers could be compensated if commission paid by the lender to their broker was not fully disclosed to them, according to a law firm.
Moore Barlow represented the owner of loan books originated by Commercial First Business (now in liquidation) in its unsuccessful appeal against two earlier conflicting rulings.
In both cases the borrowers had gone into default and then challenged whether their loans were enforceable due to commissions they did not know about.
One of the earlier cases ruled in the lender’s favour on the basis that there was no contract with the broker and the borrower had not paid a fee therefore they could not have “reasonably expected undivided loyalty”.