Not upheld: Section 75 Consumer Credit Act claim - alleged breach of contract by supplier; financial hardship complaint against Shawbrook Bank Limited

Decision detail

Summary

Mr and Mrs A purchased Fractional Club membership in 2016 financed by a £19,886 loan from Shawbrook Bank Limited. Their membership was suspended in 2021 due to non-payment of management charges. In June 2025, they complained that the supplier had breached the purchase agreement by entering liquidation and that they could no longer access the property, requesting loan cancellation due to financial hardship. The ombudsman found no evidence supporting their breach of contract claim, noting that the membership could be reinstated if fees were paid and that the lender had appropriately offered to discuss their financial difficulties. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Mr and Mrs A could not currently use their membership because it was suspended due to non-payment of maintenance charges, which was explained in the Information Statement provided at purchase. The ombudsman noted that Mr and Mrs A provided no evidence demonstrating they were unable to: (1) reinstate their membership by paying outstanding fees; (2) use the membership for holidays once reinstated; or (3) receive their share of net sale proceeds when membership ends. The allegations of breach of contract were unsupported by evidence, and the ombudsman found no obligation on the lender to provide proof of these matters. Regarding financial hardship, the lender appropriately offered to discuss the situation and provided details of independent advice organisations.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website