Not upheld: failure to provide periodic statements under Consumer Credit Act; unfair debt recovery practices complaint against A Shade Greener (Boilers) LLP

Decision detail

Summary

Mr W complained that ASG failed to provide annual statements regarding an outstanding balance of £1,359.19 under a 2013 conditional sale agreement for boiler supply and maintenance. The matter had previously been subject to court proceedings which were struck out. ASG had not issued statements since 2021 due to the litigation. Mr W offered 50% settlement which ASG rejected. The ombudsman found that while ASG may not have complied with Section 77A of the Consumer Credit Act, determining enforceability is a court matter. The ombudsman concluded Mr W had not been disadvantaged by the lack of statements as the balance had not changed since 2022, and ASG was entitled to reject the settlement offer as a commercial decision. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman distinguished between legal enforceability issues under the Consumer Credit Act (which only courts can determine) and whether ASG treated Mr W fairly (which the ombudsman can assess). While accepting that ASG may not have sent annual statements as required by Section 77A, the ombudsman found Mr W had not been disadvantaged because the balance had remained unchanged since 2022. The ombudsman concluded that ASG was entitled to reject Mr W's settlement offer as a commercial decision and that this did not constitute unfair treatment.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website