Credit card company bound by the fraudulent misrepresentations of its supplier - .PDF file.
Finance companies are liable to the ultimate customer on the basis of joint and several liability with the supplier — and this includes in relation to fraudulent misrepresentations.
This was the finding of the County Court in Mal’ouf v MBNA Europe Bank Ltd (t/a Abbey Cards). The claimant had been induced to purchase two plots of land from two companies. The vendors had fraudulently misrepresented that it was very likely that the plots would get planning permission, significantly increasing their value.
The claimant paid the deposits for the plots using her credit card. The companies became insolvent and the claimant pursued her claim for return of the purchase prices against the defendant credit card company. The defendant had no knowledge of the frauds but the claimant claimed they were liable under s56 and s75 of the Consumer Credit Act 1974…
Click on the link below to read the rest of the Wragge & Co briefing.