Not upheld: Other regulated complaint complaint against Aviva UK Digital Limited

Decision detail

Summary

Mr F complained that Aviva failed to clearly inform him that choosing to pay his home insurance policy in monthly instalments would involve entering into a credit agreement that would be recorded on his credit file. Aviva set up a credit agreement for the £472.67 annual premium, with Mr F to repay via an initial payment and ten monthly instalments. The ombudsman reviewed the sales process and supporting documentation and found that Aviva had provided adequate notice through multiple screens and documents that the instalment option involved a credit agreement and would be reported to credit agencies. The ombudsman concluded that Mr F reasonably could have known about the credit reporting and had the option to withdraw within 14 days or pay annually. The complaint was not upheld and the settled credit agreement record was not removed from Mr F's credit file.

The Ombudsman's reasoning

The ombudsman found that Aviva provided adequate notice and clear information about the credit agreement at multiple stages of the sales process. The sales process explicitly stated that monthly instalments 'often means you'll enter into a credit agreement', and the supporting documents explained the credit agreement terms, the potential for credit checks, and the impact on credit rating if payments were missed. Mr F was also given the right to withdraw within 14 days. The ombudsman concluded that Mr F reasonably could have known Aviva would report the agreement to his credit file based on the information provided.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website