Upheld: unfair termination fees / failure to evidence work completed complaint against Consultation Claims Ltd

Decision detail

Summary

Mr B instructed Consultation Claims Ltd to pursue a mis-sold Motor Finance Commission claim in September 2025 but requested cancellation approximately one month later. CCL refused to cancel without applying a termination fee, which Mr B disputed. The ombudsman found that while Mr B likely did instruct CCL (evidenced by his driving license upload), CCL's terms and conditions clearly state termination fees must be based on work actually completed. CCL failed to provide evidence of any work completed despite multiple requests from the service. The ombudsman upheld the complaint and directed CCL to cancel the claim and waive the termination fee, placing Mr B at no cost.

The Ombudsman's reasoning

The ombudsman found that while Mr B likely did instruct CCL (evidenced by his driving license upload), the terms and conditions clearly state that termination fees are only applicable based on work actually completed. CCL failed to provide evidence of any work completed before the cancellation request despite multiple requests from the service. Without such evidence, the ombudsman could not be satisfied that any termination fee was fair or applicable. Therefore, CCL acted unfairly in refusing to cancel without a fee.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website