Not upheld: unfair administration and treatment of vulnerable customer complaint against STARTLINE MOTOR FINANCE LIMITED

Decision detail

Summary

Miss S complained that Startline Motor Finance acted unfairly in administering her hire purchase agreement after her car was written off in July 2025, leaving an outstanding balance of £1,104.57. She argued that as a vulnerable customer with mental health difficulties, Startline should have provided tailored support, reasonable adjustments, and an affordable repayment plan, rather than initially demanding repayment within 7 days as per contract terms. Startline agreed to flexible three-month repayment arrangements which Miss S successfully completed, and removed her from automated contact systems after she requested no further contact. The ombudsman found that Startline acted fairly by accommodating Miss S' needs beyond its contractual obligations, communicated effectively with her, and that the difficult situation was caused by the accident rather than Startline's actions, resulting in no demonstrable harm.

The Ombudsman's reasoning

The ombudsman found that while the contract required repayment within 7 days, Startline went beyond its contractual obligations by agreeing to flexible three-month repayment arrangements that Miss S could afford. The firm communicated effectively with Miss S, made adjustments to its normal processes by removing her from automated contact systems, and ultimately resolved the situation. Although some correspondence may have been alarming, Startline was not acting incorrectly in informing Miss S of consequences for non-payment within the contractual timeframe. The ombudsman concluded that the difficult situation was caused by the accident, not by Startline's actions, and that Miss S was able to communicate with the firm and complete the agreed repayments.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website