Not upheld: inadequate support during financial difficulty / refusal to restructure agreement complaint against Tesla Financial Services Limited

Decision detail

Summary

X complained that TFSL failed to provide adequate support when facing financial difficulty following a permanent income reduction in August 2025. X sought either a term extension or reduced monthly repayments on their conditional sale agreement, but TFSL offered only a temporary payment holiday and voluntary termination, explaining they could not restructure the agreement. The ombudsman found TFSL acted fairly and reasonably, as they were not obliged to offer the restructuring options X preferred, and the options provided did not worsen X's financial position. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that TFSL was not obliged to offer payment restructuring or term extension, as these were not options within their contractual or regulatory framework. While X's circumstances were genuine and permanent, temporary measures like payment holidays were appropriately offered as they would not worsen X's position. TFSL's suggestion of voluntary termination was a reasonable option given the constraints, and the firm's recommendation to seek third-party refinancing demonstrated appropriate consideration. The ombudsman concluded TFSL provided the forbearance and due consideration required by industry guidelines.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website