Why can credit agreements and the methods used for selling payment protection insurance (PPI) be challenged?
The Consumer Credit Act requires all credit agreements to contain certain points so that consumers are aware of them when taking a credit card or loan. These include things like the Annual Percentage Rate (APR), total amount payable and monthly payments. If any of these points are missing then the agreement may be unenforceable. Likewise, the FSA has strict guidelines, which must be adhered to by lenders when selling PPI. If these are not adhered to then the policy may have been mis-sold.