Partially upheld: Service failures generally complaint against Alphabet (GB) Limited
Financial Ombudsman decision DRN-3119210 of 2019-03-01T00:00:00+00:00. Service failures generally complaint against Alphabet (GB) Limited. Outcome: Partially upheld.
Decision detail
| Reference | DRN-3119210 |
|---|---|
| Decision date | 2019-03-01T00:00:00+00:00 |
| Firm | Alphabet (GB) Limited |
| Product | Motor finance (PCP / HP) |
| Claim type | Service failures generally |
| Outcome | Partially upheld |
| Remedy | Alphabet (GB) Ltd directed to: (1) refund Miss H £304.57 + VAT for maintenance charges; (2) pay £300 compensation for trouble and upset caused by the matter. |
Summary
Miss H leased a vehicle from Alphabet for 24 months, paying upfront rental and maintenance charges. The vehicle was stolen after 11 months, and Alphabet provided a settlement figure to the insurance company. Miss H requested a pro-rata refund of her upfront payments but received conflicting information, initial promises of refunds that were later withdrawn, and significant delays in responses. The ombudsman found that Alphabet's upfront rental payments were properly accounted for in the settlement calculation using the 'true cost' method, but upheld the complaint regarding the maintenance charges refund and compensation for poor customer service. Alphabet was ordered to refund £304.57 + VAT for maintenance and pay £300 compensation.
The Ombudsman's reasoning
The ombudsman found that Alphabet's upfront rental payments were incorporated into the settlement figure calculation using the 'true cost' settlement method, which recalibrates payments based on the actual term of the lease versus the original term. The settlement figure of £22,503.91 was lower than the insurance company's valuation because it accounted for the upfront rentals Miss H had already paid. However, the ombudsman upheld the complaint regarding maintenance charges, which should be refunded as they provided no benefit after the vehicle was stolen. The ombudsman also upheld the complaint regarding poor customer service, as Alphabet failed to provide clear explanations and caused unnecessary delays and distress.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Alphabet (GB) Limited, all decisions | 17 | 18% |
| Service failures generally, all decisions | 32,767 | 33% |
| Motor finance (PCP / HP), all decisions | 19,455 | 38% |
Source
Read the original decision on the Financial Ombudsman Service website