PPI claims–section 32 of the Limitation Act 1980 and sections 140A-D of the Consumer Credit Act 1974 (Canada Square Operations Ltd v Potter)

Article summary

Financial Services analysis: This case dealt with a commonly occurring problem regarding limitation defences in respect of PPI mis-selling claims. PPI providers had charged a large commission which meant that there was a claim for compensation under the Consumer Credit Act 1974 (CCA 1974) on the basis of an ‘unfair relationship’. However, the Insurance Code of Business Rules (ICOB Rules) at all material times had imposed no obligation on PPI providers to disclose the level of their commissions. In the instant proceedings, the claim was prima facie statute barred because the PPI had been taken out in 2006. Ms Potter sought to rely on section 32(1)(b) and 32(2) Limitation Act 1980 (LA 1980), ie arguing that her right of action had been deliberately concealed from her and/or that there had been a breach of duty in circumstances where that breach was unlikely to be discovered for some time....