Discretionary Management

Section 75 of the Consumer Credit Act 1974 requires that for connected lender liability to apply, there must be actionable misrepresentation or breach of contract by the supplier, which must be proven by the consumer.

A lender is not liable under Section 75 of the Consumer Credit Act for alleged misrepresentations by a supplier unless the consumer provides sufficient evidence to demonstrate actionable misrepresentation or breach of contract.

A credit provider's relationship with a borrower is only unfair under section 140A of the Consumer Credit Act 1974 if the creditor has acted irresponsibly or the borrower has suffered a detriment that makes the relationship unfair.

Charges on discretionary managed investment policies are permissible where they are part of the policy terms and used to cover administration and life cover costs, even if not prominently disclosed prior to recent regulatory changes.

Lenders must carry out reasonable and proportionate affordability checks before lending, assessing both the likelihood of sustainable repayment and the impact on the customer's finances.