Not upheld: section 75 claim rejection based on limitation period complaint against HSBC UK Bank Plc

Decision detail

Summary

Mr P purchased spray foam insulation in March 2019 for approximately £3,700 using an HSBC credit card. In June 2025, after discovering the insulation was damaging his roof, he paid approximately £6,800 to have it removed. Mr P then raised a section 75 claim with HSBC in August 2025, which HSBC declined as being outside the six-year limitation period. The ombudsman upheld HSBC's decision, finding that it was fair and reasonable to reject section 75 claims brought after the six-year limitation period had expired, and that no exceptions to this period applied to Mr P's breach of contract claim.

The Ombudsman's reasoning

The ombudsman applied the Limitation Act 1980 six-year limitation period to section 75 claims, finding it fair and reasonable for creditors not to honour claims brought after this period expires. The alleged breach of contract occurred in March 2019 when the spray foam was installed, and the claim was not raised until August 2025, exceeding six years. The ombudsman considered whether exceptions under sections 14A and 32 of the Limitation Act could apply but concluded they did not. Section 14A (negligence with unknown facts) does not apply to breach of contract claims, and section 32 (mistake) would not extend the period as the mistake would not be essential to the cause of action.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website