Not upheld: Goods and services under S75 complaint against Carnegie Consumer Finance Limited
Financial Ombudsman decision DRN-3893622 of 2023-03-13T00:00:00+00:00. Goods and services under S75 complaint against Carnegie Consumer Finance Limited. Outcome: Not upheld.
Decision detail
| Reference | DRN-3893622 |
|---|---|
| Decision date | 2023-03-13T00:00:00+00:00 |
| Firm | Carnegie Consumer Finance Limited |
| Product | Personal loan |
| Claim type | Goods and services under S75 |
| Outcome | Not upheld |
| Remedy | No remedy ordered. The ombudsman acknowledged that Mr Y might theoretically pursue a court claim for a reduction in course cost if unfairness could be demonstrated, but found no evidence that video-based training disadvantaged his learning. |
Summary
Mr Y financed a 36-month domestic electrician course with a £5,460 loan from Carnegie, expecting classroom-based practical sessions combined with self-study. During the Covid-19 pandemic, the course provider N replaced classroom sessions with video-based learning. After restrictions eased, N continued with the video format rather than reverting to practical sessions, prompting Mr Y to complain to Carnegie. The ombudsman found that the course content and qualification remained unchanged, the course was primarily self-study based, and Carnegie's proposed resolution including five practical week sessions was reasonable. The complaint was not upheld as no unfair dealing or breach of contract was found.
The Ombudsman's reasoning
The ombudsman found that while the delivery method changed from classroom-based to video-based learning, the course content and qualification remained the same. The changes were necessitated by the pandemic and were not misrepresented at the time of contract. The course was primarily self-study based, making the shift to video learning a material but not fundamental alteration. The ombudsman noted that Terms 11 and 19 referenced practical experience days but the agreement did not specify the number or guarantee their provision. Carnegie's proposed resolution of five practical week sessions or an accelerated two-and-a-half week arrangement would likely remedy any potential breach. Even if a breach existed, Mr Y had received the benefit of the course learning and could not expect a full refund.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Carnegie Consumer Finance Limited, all decisions | 32 | 3% |
| Goods and services under S75, all decisions | 19,153 | 37% |
| Personal loan, all decisions | 22,762 | 30% |
Source
Read the original decision on the Financial Ombudsman Service website