March 2015, the Court of Appeal gave judgement in the McWilliam & McWilliam v Norton Finance (UK) Limited case [a full copy of the judgement can be found here]. The case has huge implications for customers who have entered a loan agreement that has been introduced by a credit broker.
Should a customer go through a credit broker to arrange a secured loan, then the consumer is entitled to the “single minded loyalty” of the credit broker;
- They must act in good faith
- A secret profit must not be taken
- They must not place themselves in a position where their duty and their interest may conflict
Therefore, where a credit broker is paid a secret commission by the lender, the broker and / or lender should disclose the amount to the borrower (customer) for this secret profit. Queensbeck can investigate and assess whether a secret commission has been paid.