Not upheld: connected lender liability under Section 75 of the Consumer Credit Act 1974; alleged misrepresentation by supplier complaint against Mitsubishi HC Capital UK PLC trading as Novuna Personal Finance

Decision detail

Summary

The estate of the late Mr R complained that Novuna Personal Finance unfairly declined a Section 75 claim relating to alleged misrepresentations by a timeshare supplier in connection with a Fractional Club membership purchased on 16 March 2015 using a £7,998 loan. The complaint was made on 3 October 2024, more than nine years after the Time of Sale. The Ombudsman found the claim was made outside the six-year limitation period under the Limitation Act 1980 and that it was not unfair for Novuna to rely on this defence. The Ombudsman also noted that the cash price of £30,218 exceeded the £30,000 threshold under Section 75(3)(b), meaning Section 75 protection did not apply in any event. The complaint was not upheld.

The Ombudsman's reasoning

The Ombudsman found that the claim was made outside the six-year limitation period established by the Limitation Act 1980. The cause of action accrued on 16 March 2015 (the Time of Sale), giving the late Mr R until 16 March 2021 to make a claim. The complaint was not made until 3 October 2024, well outside this period. While the professional representative invoked Section 32 of the Limitation Act (which postpones the limitation period in cases of fraud, concealment, or mistake), the Ombudsman found insufficient persuasive evidence of fraud, concealment, or mistake. Additionally, the Ombudsman noted that Novuna could have declined the claim under Section 75(3)(b) because the cash price of £30,218 exceeded the £30,000 threshold, meaning Section 75 protection did not apply in any event.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website