Not upheld: unfair interest rate and limited exit options complaint against RCI Financial Services Limited trading as Nissan Financial Services

Decision detail

Summary

Mr S complained about the interest rate on a hire purchase agreement with RCI for a vehicle acquired in March 2023, claiming it was excessive and left him with negative equity of approximately £2,500 when he wanted to exit around two years later. He argued RCI did not consider his circumstances or offer alternative options. RCI and the investigator both rejected the complaint, finding the interest rate was clearly presented and Mr S had agreed to the terms by signing. The ombudsman upheld this decision, concluding the interest rate was clearly displayed in plain language, Mr S knowingly accepted the terms, and RCI was not obliged to offer alternatives or vary the agreement.

The Ombudsman's reasoning

The ombudsman applied the Consumer Rights Act 2015 and CONC regulations to assess whether the interest rate and contract terms were unfair or unclear. The interest rate was clearly presented on the front page in plain language, making it reasonably clear to an average consumer. Mr S knowingly signed the agreement and did not dispute the terms until two years later. The ombudsman found no evidence that Mr S was not provided with the interest rate he agreed to. Regarding exit options, these were consistent with the agreement terms, and RCI was not obliged to vary terms or offer alternatives outside those agreed. The ombudsman concluded RCI provided an acceptable level of service.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website