Not upheld: section 75 Consumer Credit Act claim - misrepresentation; limitation period defence complaint against Barclays Bank UK PLC trading as Tesco Bank

Decision detail

Summary

Mr T purchased a timeshare membership in September 2014 and upgraded it in December 2016, both financed using his credit card with Tesco Bank. He alleged the Supplier misrepresented the timeshare, claiming he could not make bookings and the accommodation quality was poor. In June 2024, Mr T made a section 75 Consumer Credit Act claim through a professional representative, but the Lender declined it as being outside the six-year limitation period. The ombudsman upheld the Lender's position, finding that the cause of action accrued at the Times of Sale (2014 and 2016), giving Mr T until 2020 and 2022 to claim. Since the claim was made in June 2024, it was time-barred under the Limitation Act 1980, and section 32(1) did not apply to extend the deadline.

The Ombudsman's reasoning

The ombudsman applied the Limitation Act 1980, which provides a six-year limitation period from the date the cause of action accrued. The cause of action accrued at the Times of Sale (September 2014 and December 2016), meaning Mr T had until 2020 and 2022 respectively to make claims. Since the claim was made in June 2024, it fell outside the limitation period. The ombudsman rejected the argument that section 32(1) of the Limitation Act extended the time limit, as the PR provided insufficient explanation of how the Lender's conduct would trigger that provision. The ombudsman also noted that Mr T became aware of the alleged misrepresentation shortly after purchase, so even if section 32(1) applied, it would not have extended the deadline sufficiently. The ombudsman found the Lender's handling of the complaint was appropriate.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website