Partially upheld: Service failures generally complaint against LeasePlan UK Limited
Financial Ombudsman decision DRN-6235775 of 2026-06-17T00:00:00+00:00. Service failures generally complaint against LeasePlan UK Limited. Outcome: Partially upheld.
Decision detail
| Reference | DRN-6235775 |
|---|---|
| Decision date | 2026-06-17T00:00:00+00:00 |
| Firm | LeasePlan UK Limited |
| Product | Motor finance (PCP / HP) |
| Claim type | Service failures generally |
| Outcome | Partially upheld |
| Remedy | LeasePlan UK Limited to pay Mr M £100 compensation for distress and inconvenience caused by poor customer service and communication errors during the early termination process. No waiver or reduction of early termination charge or excess mileage charge required. |
Summary
Mr M complained about charges applied by LeasePlan when he terminated a car hire agreement early in February 2025, including an early termination charge of £509.76 and excess mileage charge of £1,102.80, as well as an erroneous additional rental payment. Mr M also claimed he had been granted a mileage allowance increase early in the agreement and complained about poor communication during the termination process. The Ombudsman found that LeasePlan's contractual charges were valid and correctly calculated, and that Mr M's claim of a mileage allowance increase lacked sufficient evidence. However, the Ombudsman upheld the complaint regarding customer service failures, finding that LeasePlan's poor communication caused avoidable distress and inconvenience. The Ombudsman required LeasePlan to pay £100 compensation, noting that the erroneous rental payment had already been refunded.
The Ombudsman's reasoning
The Ombudsman found that LeasePlan's contractual right to apply early termination and excess mileage charges was valid and the calculations were correct. The early termination charge error was remedied by the full refund of the erroneous February payment, effectively putting Mr M in the position he would have been in had no error occurred (£169.92 benefit). Regarding the claimed mileage allowance increase, the Ombudsman found insufficient evidence to support Mr M's recollection, noting that such a material change would typically require written confirmation and would likely have affected monthly rental payments, which remained constant. However, the Ombudsman upheld the complaint regarding customer service failures, finding that LeasePlan's poor communication and multiple confusing emails caused avoidable distress and inconvenience, warranting compensation of £100.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| LeasePlan UK Limited, all decisions | 176 | 29% |
| Service failures generally, all decisions | 34,193 | 32% |
| Motor finance (PCP / HP), all decisions | 19,840 | 38% |
Source
Read the original decision on the Financial Ombudsman Service website