Not upheld: PCP / HP mis-selling complaint against Toyota Financial Services (UK) PLC

Decision detail

Summary

Miss C complained about Toyota Financial Services' handling of a Hire Purchase Agreement for a car and their treatment when she faced financial difficulties between 2017 and 2019. Toyota acknowledged they had not supported Miss C adequately during the agreement term and paid her £530 in compensation (£100 plus £430). Miss C disputed this amount, arguing it did not reflect the impact of Toyota's failings and the distress caused when she was forced to sell the car to meet the final payment obligation in 2019. The ombudsman found that while Toyota's support during the agreement term was inadequate, the compensation paid was fair, and Toyota were not obligated to offer further forbearance after the contractual term ended, so the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman acknowledged Toyota's admitted failings in support during the agreement term but found the compensation of £530 fairly reflected the impact of those shortcomings. While recognizing Miss C's distress at the end of term options and the loss of the car, the ombudsman concluded Toyota were not obligated to offer further forbearance after the contractual agreement ended, and the final payment requirement was a contractual term Miss C had agreed to. The ombudsman distinguished between shortcomings during the term (which occurred) and at the end of term (which did not), finding Toyota presented the correct end-of-term options.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website