Extortionate credit bargain PPI decision

HHJ Keyser Q.C. has handed down a reserved judgment in ‘Brookman v Welcome Financial Services Ltd’, on the application of the ‘extortionate credit bargain’ provisions. He held that a PPI policy was not part of the “credit bargain” (as it was not represented to be compulsory, and therefore was not part of the total charge for credit), but was nonetheless a linked transaction capable of being relevant under s138(5) to whether the credit agreement was extortionate. The question, however, was whether the credit agreement was extortionate, not whether the PPI policy was extortionate. Non-disclosure of PPI commission did not give rise to an extortionate credit bargain. Simon Popplewell appeared for the lender. Judgment available.