Not upheld: Section 75 Consumer Credit Act claim rejection; alleged timeshare mis-selling complaint against Clydesdale Financial Services Limited, trading as Barclays Partner Finance

Decision detail

Summary

Mr F purchased a timeshare in March 2012 financed by the Lender and paid off the loan by June 2013. He surrendered the original timeshare in August 2014. In December 2024, Mr F complained that the timeshare had been mis-sold and made a Section 75 claim against the Lender. The Lender rejected the claim. The ombudsman found the claim was time-barred under the Limitation Act 1980, as the six-year limitation period for breach of contract claims had expired in August 2020. Accordingly, the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the Limitation Act 1980 to determine whether the Section 75 claim was time-barred before presentation to the Lender. Section 75 claims mirror claims against the supplier and are subject to the same limitation periods. The six-year limitation period for breach of contract claims runs from the date the cause of action accrued. Since the original timeshare contract ended in August 2014, any claim would have needed to be made by August 2020. As Mr F did not present his claim until 18 December 2024, it was neither unfair nor unreasonable for the Lender to reject it.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website