Not upheld: connected lender liability; timeshare mis-selling; unfair credit relationship complaint against Clydesdale Financial Services Limited, trading as Barclays Partner Finance (BPF)

Decision detail

Summary

Mr B, through his personal representative, complained that BPF failed to accept responsibility for the mis-sale of a Fractional Club timeshare membership purchased in July 2012 and financed through a £25,974 loan, and for his subsequent difficulty in repaying the loan. Mr B alleged the Supplier misrepresented the product as a secure investment with resale value, applied unfair charges, and used high-pressure sales tactics. The ombudsman found that Mr B's Section 75 claim for misrepresentation was time-barred as it was notified in July 2025, more than six years after the July 2012 purchase date. The ombudsman also rejected claims of unfair credit relationship under Section 140A, finding insufficient evidence that pressure selling, unaffordable lending, or breaches of timeshare regulations materially affected Mr B's decision to purchase. Consequently, the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied a six-year limitation period under the Limitation Act 1980 to Section 75 claims for misrepresentation, finding that Mr B's claim notified in July 2025 was time-barred as the cause of action accrued in July 2012. Regarding Section 140A unfairness claims, the ombudsman found insufficient evidence that pressure selling significantly impaired Mr B's choice, that the lending was unaffordable at the time, or that any breach of the Timeshare Regulations regarding investment marketing had a material impact on his purchasing decision. The ombudsman also found that any failures to provide information about ongoing costs did not materially affect the outcome, as Mr B would likely have proceeded with the purchase regardless.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website