Not upheld: mis-selling of hire agreement and service failure in vehicle disposal process complaint against Lex Autolease Ltd

Decision detail

Summary

Mr M complained that a hire agreement with Lex Autolease Ltd was mis-sold to him because he believed he was purchasing a van when he was actually entering a hire agreement. He also complained about difficulties in selling the vehicle at the end of the agreement, claiming Lex made the process too difficult and he was left out of pocket due to maintenance costs and inability to sell. The ombudsman found the agreement was not mis-sold as it clearly stated Mr M would not own the vehicle and he signed it with full knowledge of its terms. The ombudsman also found Lex acted reasonably in rejecting a below-market-value sale offer, requiring a full signature on end-of-contract forms, and cancelling a sale when payment was not received by the deadline. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found no contemporaneous evidence of misrepresentation. The hire agreement explicitly stated on multiple pages that Mr M would not own the vehicle and that it was regulated by the Consumer Credit Act 1974. Mr M signed the agreement and agreed to be bound by its terms. Regarding the vehicle disposal, the ombudsman found Lex acted reasonably in rejecting the £100 sale price as not open market value, in requiring a full signature consistent with the original agreement, and in cancelling the £5,000 sale when payment was not received by the deadline. The ombudsman was satisfied Mr M was aware of the disposal process and the steps required.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website