Not upheld: PCP / HP mis-selling complaint against Zenauto Limited

Decision detail

Summary

Mrs C complained about £4,213 in excess mileage charges applied by ZenAuto when she returned a hired vehicle in July 2023 after a 3-year agreement. She had driven 52,474 miles, exceeding her contracted allowance of 24,000 miles by 28,474 miles, and argued the charge was punitive and did not fairly reflect depreciation. The ombudsman found the charges were clearly set out in the Key Information section of the agreement, Mrs C was aware of the cost implications having sought to increase her mileage allowance twice, and the charges were fair and reasonable. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Mrs C agreed to clear contractual terms setting out the excess mileage charge rate, knowingly exceeded the contracted mileage allowance, and was aware that exceeding mileage limits would incur additional costs as evidenced by her two attempts to increase her allowance. The charges were not disproportionate and were fair and reasonable for the vehicle in question. The ombudsman rejected Mrs C's argument that the charges were punitive or penal.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website