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'£8,000 credit card debt cancelled in landmark court case'

A credit card holder has been told by a county court she will not have to pay an £8,000 debt on her card because of the way in which she had been sold payment protection insurance (PPI), it has been reported.

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2 October 2009

'£8,000 credit card debt cancelled in landmark court case'

Lynne Thorius, a cleaner on a low income, was taken to court by MBNA over the debt on her credit card, according to the Guardian.

However, Ms Thorius said she was advised by MBNA to take out PPI although she was not told it would receive a commission from the sale.

The South Shields county court ruled that an "unfair relationship had arison between the two parties.

Consequently Ms Thorius was not obliged to pay the debt.

It is thought this case could affect other cases where people have been sold PPI in the future.

According to the Daily Telegraph, an estimated 40 million PPI policies have been sold in Britain the in past six years.

Written by Sarah Nyman

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