Payment protection insurance: transfer of business

The issues surrounding payment protection insurance (PPI) are well known and have taken up much of the attention of the Financial Conduct Authority and the Financial Ombudsman Service as well as the courts. Such policies are designed to insure a borrower against various risks which might lead to inability to repay the debt, eg, illness or loss of employment. Unfortunately, such policies were mis-sold in two main respects: the insurance was packaged up in the loan, so the assured was often unaware that he or she was paying PPI premiums at all; and the policies were supplied to people who could never benefit from them, eg, the self-employed.

PA(GI) Ltd v GICL 2013 Ltd and Another [2015] EWHC 1556 (Ch) concerns a dispute as to the transfer of a portfolio of such policies.