Not upheld: unfair termination of hire purchase agreement and sale of vehicle complaint against Volkswagen Financial Services (UK) Limited trading as Seat Financial Services

Decision detail

Summary

Mrs B complained that VWFS unfairly terminated her hire purchase agreement and sold her car without consent. She had acquired the car in January 2025 intending for her daughter to drive it, though all documentation was in her name. When the car was seized by police in March 2025 after being driven by her daughter's partner, VWFS issued a default notice and later sold the vehicle. Mrs B claimed she was misled about the car being sold and wanted to refinance it. The ombudsman found that Mrs B had breached the agreement terms by not keeping the car in her possession and control, and that VWFS acted fairly in terminating the agreement and selling the car, despite providing incorrect information during the complaint investigation.

The Ombudsman's reasoning

The ombudsman found that Mrs B breached the agreement terms by not keeping the car in her possession and control, as she acquired it intending for her daughter to drive it. This created circumstances allowing an uninsured, unconnected person to take the car. While VWFS provided incorrect information about the car's status during the complaint investigation, the ombudsman determined this did not make the sale unfair, as VWFS had properly issued a default notice stating the breach was not remediable and retained contractual rights to recover and sell the goods. The ombudsman concluded it was impossible to determine whether Mrs B could have refinanced before the default notice expired.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website