Not upheld: Service suspension following multiple early contract terminations complaint against Motability Operations Limited (MOL)

Decision detail

Summary

Mr B, a long-standing Motability Scheme customer, complained that MOL wrongfully suspended him for 24 months after he terminated his agreement early in August 2025. MOL had identified that Mr B had terminated six agreements early and applied a two-year suspension under their multiple cancellations policy. Mr B argued that some previous cancellations should not have counted and that he had been told certain agreements would be disregarded. The ombudsman found that MOL's policy was sensible and proportionate, that Mr B's history of multiple early terminations (four within seven years) fairly triggered the review process, and that discretion applied to one earlier cancellation did not exempt future terminations from consideration. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found MOL's multiple cancellations policy to be sensible and proportionate, as early terminations create significant costs for the scheme. The policy allows for discretionary review rather than automatic suspension. Mr B's history of four terminations within seven years, plus earlier terminations, triggered the review process fairly. Although MOL had applied discretion to the February 2024 cancellation, this did not exempt future terminations from consideration under the policy. The ombudsman found no evidence that MOL acted outside their policy or communicated unfairly with Mr B.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website