A Scottish lawyer has warned credit companies to put up a stronger fight if they want to prevent insurance companies getting the upper hand.
Mark Higgins, head of insurance at Glasgow-based Golds solicitors warned that the House of Lords' decision in Dimond v Lovell could jeopardise other consumer service agreements.
Higgins claimed that the complexity of the law surrounding some hire and credit agreements, including those governing internet use, created work for lawyers but did not benefit consumers.
Higgins said: "The Consumer Credit Act is a minefield that is too complex for most consumers to understand. One wonders what is on the cards for the credit hire industry now."
In Dimond v Lovell the Lords found that under the act insurers did not have to meet credit hire companies' higher rates for replacement vehicles.
Credit hire company Helphire recently reached an out of court settlement with CGNU and Royal & SunAlliance regarding more than 14,000 credit hire cases. It followed a similar settlement with Direct Line which affected 1,000 cases.
