Non-Disclosure of the Commissions timeshare resorts receive from banks

0 Members and 1 Guest are viewing this topic.

Offline TimeshareTalk

  • Administrator
  • Full Member
  • *****
  • Posts: 239
  • Karma: +36/-0

The Supreme Court here found that the non-disclosure of the commissions payable out of Mrs Plevin's premium made her relationship with the Bank unfair. The Court accepted that Mrs Plevin must have known that some commission would have been payable to intermediaries but that the commission paid had become so large that the relationship could not be regarded as fair if the customer is kept in ignorance.

Whilst the Court accepted that it would be difficult to decide what level would create an unfair relationship, it considered that the level of the commission there was a long way beyond any tipping point as Mrs Plevin would have questioned whether the loan interest rate or product represented good value for money. As a consequence, the Supreme Court found that the Court of Appeal had previously wrongly decided Harrison v. Black Horse Ltd as although the premium, in that case, was found to be "quite startling", the relationship was not unfair because the lender had not breached ICOB in either charging the commission or failing to disclose it.

How much commission do timeshare resorts get from banks?