Not upheld: unfair contract terms; requirement for location tracker as condition of lease complaint against Motability Operations Limited

Decision detail

Summary

Mr G complained that Motability unfairly required a location tracker to be fitted to any vehicle he leased through their scheme, claiming the requirement arose from an error made by his carer on an earlier application. Motability explained that it identified concerns during the application process relating to information provided and application history, and that its scheme rules permitted it to require a tracker to monitor vehicle use and protect the scheme. The ombudsman found that the tracker requirement was legitimate, reasonable, fairly applied, and in line with Motability's terms and conditions, and that Mr G had been informed of the requirement before proceeding. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Motability's terms and conditions legitimately allow the firm to require a telematics device where considered necessary to ensure appropriate vehicle use and safeguard the scheme. The ombudsman considered Motability's review of the overall application history, including the earlier application with a different named driver and incorrect address information, to be a reasonable approach. The ombudsman was satisfied that Motability applied the requirement fairly, in line with its process, and explained the requirement to Mr G before the application progressed.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website