Not upheld: unfair charges - alleged unfair charge for missing service history following voluntary termination complaint against SECURE TRUST BANK PUBLIC LIMITED COMPANY trading as Moneyway

Decision detail

Summary

Mr E complained about a £170 charge imposed by Secure Trust Bank after he voluntarily terminated a hire purchase agreement for a car, claiming the charge for missing service history was unfair. Mr E argued the vehicle passed an MOT with no advisories and an independent inspection found no damage or deterioration beyond reasonable wear and tear. Secure Trust maintained that the agreement required the vehicle to be maintained in line with manufacturer guidelines and that the absence of service history indicated non-compliance. The ombudsman upheld Secure Trust's position, finding that the absence of service records for a vehicle covering 18,000 miles demonstrated on the balance of probabilities that the car was not properly maintained, and that the charge was fair and in line with the agreement terms.

The Ombudsman's reasoning

The ombudsman applied the Consumer Credit Act 1974 sections 99 and 100, which limit consumer liability following voluntary termination to failure to take reasonable care of goods. The ombudsman found that the absence of service history for a vehicle covering 18,000 miles, combined with manufacturer requirements for regular servicing, demonstrated on the balance of probabilities that the car was not maintained in accordance with requirements. While the recent MOT and inspection report showed no physical damage, these do not evidence that servicing was carried out as required. The charge was therefore fair and reflected the impact on resale value.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website