Consumers are protected by the Consumer Credit Act from lenders who would try to create unfair transactions and agreements with their borrowers. For an individual to be able to secure consumer credit claims, they will have to prove that the agreement is indeed unfair for them. Listed under the provisions of the act are instances where an agreement is considered unfair; therefore, it becomes unenforceable. This means that the agreement is valid but could not be used as of the moment because of a few discrepancies; they cannot be used or enforced.
Due to these discrepancies, the consumer can argue with the validity of their credit agreement. That is the time where they could contest their credit companies and file a claim against them. They will need to prove that there was unfair treatment from the credit company and that they have incurred charges that were really not valid to start with. In these kinds of proceedings, someone knowledgeable could be an advantage. These people can help the consumer create a stronger complaint against the credit company making their chances of getting a fat compensation a lot better. But more importantly, the consumer will have the chance of protecting their credit history from getting tainted with their trouble with the credit company they’re filing a claim against.
When it comes to ppi and consumer credit claims, the courts always have the final say. They will be the judge whether the consumer-creditor relationship was indeed unfair based on the proof that both parties have presented. Their decision could be to alter the terms of the credit agreement or reduce the amount that is payable by the borrower. Sometimes, the court would instruct the lender to refund the money to the borrower and impose requirements on the lender. If the credit company is indeed found to be responsible for making such unfair transaction, they will have to follow what the court has ruled them to do even if that meant paying the consumer as compensation.