Not upheld: Other regulated complaint complaint against Carnegie Consumer Finance Limited

Decision detail

Summary

Mr A complained that Carnegie Consumer Finance Limited unfairly refused to cancel his fixed sum loan agreement for a training course after he suffered a bereavement and could no longer continue with his studies. The loan agreement clearly stated that cancellation was only possible within 14 days, and Mr A did not request cancellation until several months later. The ombudsman found that the cancellation terms were clearly communicated and accepted by Mr A, and that Carnegie had taken reasonable supportive steps by arranging a six-month course deferral and offering a reduced payment plan. The complaint was not upheld as Carnegie had not acted unfairly or in breach of the agreed terms.

The Ombudsman's reasoning

The ombudsman found that the 14-day cancellation right was clearly set out in both the loan agreement and the course provider contract, which Mr A electronically signed and confirmed he had read and accepted. While sympathising with Mr A's bereavement and difficult circumstances, the ombudsman concluded that Mr A accepted clear contractual terms and his request to cancel came several months after the 14-day period had elapsed. The agreement contained no provision for cancellation after 14 days or for exceptional circumstances such as bereavement. Carnegie's offer to defer the course and consider a reduced payment plan were deemed reasonable supportive measures.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website