Upheld: Other regulated complaint complaint against Mitsubishi HC Capital UK PLC trading as Novuna Personal Finance
Financial Ombudsman decision DRN-6268089 of 2026-06-29T00:00:00+00:00. Other regulated complaint complaint against Mitsubishi HC Capital UK PLC trading as Novuna Personal Finance. Outcome: Upheld.
Decision detail
| Reference | DRN-6268089 |
|---|---|
| Decision date | 2026-06-29T00:00:00+00:00 |
| Firm | Mitsubishi HC Capital UK PLC trading as Novuna Personal Finance |
| Product | Personal loan |
| Claim type | Other regulated complaint |
| Outcome | Upheld |
| Remedy | The Lender must: (1) refund all repayments under the Credit Agreement and cancel any outstanding balance; (2) refund annual management charges and the difference between trial membership trade-in value and capital sum refinanced; (3) deduct the value of promotional giveaways and market value of holidays taken; (4) add simple interest at 8% per annum to net repayments from date paid until settlement; (5) remove adverse credit file information within six years; (6) if membership still exists, indemnify Mr and Mrs J against ongoing liabilities provided they assign or hold the Allocated Property interest for the Lender. |
Summary
Mr J and Mrs J purchased Fractional Club membership in October 2018 for £16,949 financed by a £21,030 credit agreement from the Lender. The membership provided holiday rights and a share in an Allocated Property's sale proceeds after 19 years. Mr J alleged the Supplier marketed membership as an investment opportunity offering financial gains, contrary to Regulation 14(3) of the Timeshare Regulations. The ombudsman found the Supplier's training manual and sales approach presented membership as combining holiday benefits with property ownership and wealth accumulation, supporting Mr J's credible testimony that he was told he could profit from the investment. The ombudsman concluded the Supplier breached Regulation 14(3) and that the Lender participated in an unfair credit relationship by financing a purchase induced by this misrepresentation. The complaint was upheld and the Lender was directed to refund repayments, management charges, and pay interest, while removing adverse credit information.
The Ombudsman's reasoning
The ombudsman found that the Supplier breached Regulation 14(3) of the Timeshare Regulations by marketing and selling Fractional Club membership as an investment. The training manual and sales approach encouraged representatives to present membership as combining holiday rights with property ownership and financial returns, implying future profits. Although disclaimers stated membership was not an investment, the practical sales approach contradicted this. Mr J's testimony that he was told he could 'capitalise on growth and get money back and more' was consistent with the training material and credible. The ombudsman rejected the Lender's arguments that Mr J's statement was unreliable, that sales notes proved holiday motivation, or that the trade-in loss indicated lack of investment motivation. The ombudsman concluded that Mr J would not have purchased the membership but for the investment representation, making the credit relationship unfair under Section 140A.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Mitsubishi HC Capital UK PLC trading as Novuna Personal Finance, all decisions | 120 | 13% |
| Other regulated complaint, all decisions | 18,717 | 18% |
| Personal loan, all decisions | 23,643 | 29% |
Source
Read the original decision on the Financial Ombudsman Service website