Partially upheld: Section 75 claim handling and fairness of settlement offer for defective goods complaint against Creation Consumer Finance Limited

Decision detail

Summary

Mr T purchased a kitchen via a fixed sum loan from Creation in February 2024, but the installation had problems requiring rectification works that remained unresolved into June 2025. After a field inspection identified 19 defects, the supplier offered either £550 plus remedial works or £2,000 in lieu of further works. Creation accepted these offers as fair, but Mr T disputed this and brought a Section 75 claim. The ombudsman found the remaining defects were limited in nature and primarily cosmetic, making the £2,000 offer fair and reasonable. However, the ombudsman found Creation's handling of the claim involved delays and lack of clarity, warranting £150 compensation for this service failure.

The Ombudsman's reasoning

The ombudsman found that while there were genuine problems with the kitchen installation, many original issues had been addressed and remaining concerns were limited in nature, primarily relating to finish and appearance rather than fundamental defects rendering the kitchen unfit for purpose. The £2,000 offer was considered fair compensation for both the cost of addressing remaining issues and the inconvenience caused by the length of time the matter had been ongoing. However, Creation's handling of the S75 claim involved delays and lack of clarity that fell short of expected standards, warranting £150 compensation. The ombudsman rejected claims regarding warranty loss, water ingress as a fundamental defect, and fridge freezer damage due to insufficient evidence.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website