Upheld: mis-selling, misleading information, unauthorised credit applications, credit file damage complaint against Arnold Clark Automobiles Limited

Decision detail

Summary

Mrs R complained to Arnold Clark in August 2025 about mis-selling, misleading information, and multiple unauthorised credit applications related to a car purchase in August 2024. Arnold Clark accepted the complaint, apologised, removed three credit searches, and offered £150 compensation. Following an investigator's recommendation, Arnold Clark removed two further credit searches. Mrs R disputed the adequacy of the £150 compensation, claiming it did not reflect the financial and non-financial impact. The ombudsman upheld the complaint but found the £150 compensation fair and reasonable, as Mrs R had not provided evidence of actual financial loss or that a new application would have been refused.

The Ombudsman's reasoning

The ombudsman found that Arnold Clark had accepted failings and taken corrective action by removing five credit searches total, leaving only the accurate record of the initial declined application. While Mrs R claimed foreseeable financial detriment from higher interest rates and loss of an approved deal, she provided no evidence of actual financial loss or that a new application would have been refused. The ombudsman considered £150 fair compensation for the distress and frustration caused, and found no evidence of inadequate complaint handling to justify further compensation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website