Not upheld: Irresponsible lending complaint against Secure Trust Bank Public Limited Company trading as Moneyway

Decision detail

Summary

Mrs A complained that she was coerced by her former husband Z into signing a hire purchase agreement for a used car in June 2023. After the car was seized by police following an accident and subsequently disposed of, Mrs A remained liable for the outstanding balance. Mrs A claimed she did not understand the agreement due to language difficulties and was pressured by Z, and sought to exit the contract and obtain a refund. The ombudsman found that while Z was heavily involved in the transaction and Mrs A experienced difficult circumstances, the evidence on balance demonstrated that Mrs A gave her authority for the agreement, having shown interest in obtaining a car and subsequently used it. The complaint was not upheld, though Moneyway was reminded to treat Mrs A's financial circumstances with forbearance.

The Ombudsman's reasoning

The ombudsman found that while Z was heavily involved in the transaction and Mrs A was experiencing difficult circumstances, the evidence on balance showed that Mrs A gave her authority or apparent authority for the hire purchase agreement. Key factors included: Mrs A showed an interest in getting a car and subsequently used it; she engaged with Moneyway about the agreement without mentioning coercion even after her relationship with Z had ended; the dealer reported no suspicious behavior or evidence of coercion; and the text messages, while showing conflict, did not demonstrate coercion into signing the agreement. The ombudsman acknowledged Mrs A's difficult circumstances but concluded there were insufficient grounds to require Moneyway to cease pursuit of the debt.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website