Not upheld: Investment mis-selling complaint against Evergreen Finance Limited

Decision detail

Summary

Mr and Mrs W complained that Evergreen Finance Limited was responsible for misrepresentations made by B about a caravan they purchased with Evergreen's finance in June 2009. They claimed B represented the caravan would maintain a 'prestige' grading for two and a half years, which formed the basis of income projections for letting the caravan. The caravan was downgraded within a year, resulting in lower-than-expected income. The ombudsman found that Evergreen Finance was not responsible because the grading issue was governed by the separate services agreement between Mr and Mrs W and B, not the finance agreement. Mr and Mrs W had already received over £3,000 in settlement from B. The complaint was not upheld.

The Ombudsman's reasoning

Evergreen Finance's responsibility was limited to the finance agreement and representations made about it. The caravan's grading and the services agreement were separate matters between Mr and Mrs W and B. Since the misrepresentation concerned the services agreement rather than the finance agreement, Evergreen Finance cannot be held responsible. Mr and Mrs W had already received compensation from B for this complaint.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website