Not upheld: Other regulated complaint complaint against Hippo Vehicle Solutions Limited

Decision detail

Summary

Miss C ordered a car from Hippo Vehicle Solutions Limited in October 2021 and entered into a 48-month hire agreement, but cancelled shortly after before delivery. Hippo deducted a £600 cancellation fee from her initial payment in accordance with the signed contract terms. Miss C complained that Hippo had suffered no loss and that she was suffering from a medical condition affecting her decision-making at the time. The ombudsman found the cancellation fee was validly contracted for, Hippo had legitimate losses from ordering the car, and Hippo was unaware of Miss C's medical circumstances, therefore not upholding the complaint.

The Ombudsman's reasoning

The ombudsman found that the contract clearly included a cancellation fee term which Miss C had signed, giving Hippo the contractual right to charge £600. The ombudsman considered whether Hippo acted fairly and concluded it did not act unfairly, as Hippo had already ordered the car and would be left with depreciating stock. Regarding Miss C's medical circumstances, the ombudsman found no evidence of duress or lack of capacity, and crucially, Hippo was unaware of these circumstances at the time of contracting, so could not have been expected to act differently.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website