What is an Unfair Relationship Claim?

Unfair Relationship claims stem from the Plevin-v-Paragon case and the changes made in 2006 to the Consumer Credit Act 1974. The CCA (1974) was amended to better protect customers who enter a credit agreement. Amongst many of the changes made was the ‘Unfair Relationship’ provisions which gives the court power to grant relief to customers who have been affected by the following factors set out in section 140A(1):

• Unfairness of any term of the agreement or any related agreement;
• The way in which the lender has exercised or enforced his rights under the agreement or any related agreement;
• Any other thing done (or not done) by, or on behalf of, the lender (either before or after the making of the agreement).

What is a Secret Commission Claim?

Customers who have entered a loan agreement that has been introduced by a credit broker are 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

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. If they haven’t, you can pursue a claim.