Not upheld: mis-selling of credit agreement and poor administration of credit agreement and power of attorney complaint against Telefonica UK Limited (trading as O2)

Decision detail

Summary

Mrs B complained that O2 mis-sold a tablet via a fixed sum loan agreement (£144 over 36 months) in July 2023, believing it was a free promotional gift. She also complained about poor administration of the credit agreement and issues with registering her daughter's power of attorney. Although Mrs B's testimony was consistent, the ombudsman found insufficient evidence to prove mis-selling due to lack of sales meeting recordings. However, O2's October 2024 credit of £145 to Mrs B's account meant she effectively received the tablet for free regardless. The ombudsman identified service failings in communication and PoA registration but found the £162.03 O2 had already paid to be fair compensation, declining to require further action.

The Ombudsman's reasoning

The ombudsman found that while Mrs B's account was consistent and plausible, there was insufficient evidence to definitively prove the tablet was mis-sold due to lack of recordings or transcripts of the sales meeting. However, this was rendered moot because O2 credited the full £145 cost to Mrs B's account in October 2024, and the monthly instalments plus the £48 lump sum payment did not exceed this credit. Therefore, Mrs B effectively received the tablet for free, which would have been the remedy if mis-selling had been proven. The ombudsman acknowledged service failings in communication about the credit agreement closure process and in PoA system registration, but found the £162.03 already paid by O2 to be fair compensation for these failings.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website