Not upheld: mis-selling - alleged failure to arrange agreement suitable for private hire use and alleged misrepresentation complaint against LSH Auto UK Limited

Decision detail

Summary

Mr F complained that LSH Auto UK Limited mis-sold a hire purchase agreement by failing to arrange an agreement suitable for private hire use, which he claimed he had communicated to LSH before entering the agreement. The agreement prohibited private hire use unless agreed by the lender. Mr F alleged he discussed his private hire intentions over the phone and in emails, but LSH denied being aware of these intentions. The ombudsman examined contemporaneous contact notes, application details, and email correspondence, finding no evidence supporting Mr F's claim that he communicated private hire intentions before the agreement was entered into. The LSH agent's email response explicitly stated they were not previously aware of private hire use. The ombudsman found the complaint not upheld, concluding there was insufficient evidence of mis-selling or misrepresentation.

The Ombudsman's reasoning

The ombudsman found that while Mr F claimed to have discussed private hire use over the phone, the contemporaneous contact notes and application details made no mention of this. The ombudsman considered these notes reliable as a contemporaneous record, noting that private hire use would have significant implications for a finance arrangement and would likely have been recorded if discussed. The subsequent email exchange, where the LSH agent explicitly stated they were not previously aware of private hire intentions, contradicted Mr F's account. The ombudsman applied the balance of probabilities standard and found insufficient evidence that Mr F communicated his private hire intentions to LSH before entering the agreement. The high mileage allowance requested was considered insufficient to demonstrate private hire use was discussed, as customers might request high mileage for various legitimate reasons.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website