Not upheld: Section 75 Consumer Credit Act claim - timeshare misrepresentation and pressure selling complaint against Shawbrook Bank Limited

Decision detail

Summary

Mr and Mrs I purchased a timeshare membership in November 2012 using a £22,019 loan from Shawbrook Bank, which was repaid in June 2017. In September 2025, they complained that they had been pressured into the purchase and that the loan was unfair, claiming the sale contravened Section 75 and Section 140 of the Consumer Credit Act. Shawbrook Bank declined the complaint citing the Limitation Act 1980. The ombudsman upheld the bank's decision, finding that the six-year limitation period had expired (the claim was made over 13 years after the purchase date) and that it was fair for the lender to rely on this statutory defence. The ombudsman also found insufficient evidence of breach of contract.

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. For misrepresentation claims, the cause of action accrued on the date of sale (November 2012). Since Mr and Mrs I did not make their claim until September 2025 (over 13 years later), the claim fell outside the statutory limitation period. The ombudsman found it was not unfair for the lender to rely on this legal defence. Regarding breach of contract claims, Mr and Mrs I provided insufficient information about the specific breaches or when they occurred, making it impossible to establish liability.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website