Not upheld: unfair charges and contract interpretation complaint against Lex Autolease Ltd

Decision detail

Summary

Mr Z complained that Lex Autolease Ltd unfairly paid a private parking charge on his leased vehicle and recharged him without allowing him to appeal or identify the driver. Mr Z argued that the hire agreement terms only permitted Lex to 'may' pay such charges, not that they were obliged to do so. The ombudsman found that the hire agreement terms gave Lex discretion to pay such charges and recover costs, and that their approach was reasonable, fair, and consistent with industry guidance. The complaint was not upheld and no remedy was ordered.

The Ombudsman's reasoning

The ombudsman found that the hire agreement terms clearly allowed Lex discretion to pay charges of this nature and recover costs from Mr Z. While Lex were not obliged to pay and could have taken alternative steps such as identifying the driver, the agreement gave them discretion in how to deal with such charges. The ombudsman considered this approach reasonable for prompt resolution and consistent with relevant BVRLA industry guidance. Therefore, Lex did not act unfairly or unreasonably.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website