Explain consumer protection acts

Question

Explain consumer protection acts?

Answer 1

Businesses often assign consumer credit contracts to finance companies. Consequently, most consumer protection acts state that the assignee of a consumer credit contract has no greater rights than the assignor and is subject to the same obligations. This ensures that consumers do not end up owing money to a finance company (who would otherwise be a holder in due course) with no opportunity to refuse to pay for defective goods or being forced to waive their rights against an assignee in a cut-out clause.