Upheld: Goods and services under S75 complaint against Mitsubishi HC Capital UK PLC trading as Novuna Personal Finance
Financial Ombudsman decision DRN-6268128 of 2026-06-29T00:00:00+00:00. Goods and services under S75 complaint against Mitsubishi HC Capital UK PLC trading as Novuna Personal Finance. Outcome: Upheld.
Decision detail
| Reference | DRN-6268128 |
|---|---|
| Decision date | 2026-06-29T00:00:00+00:00 |
| Firm | Mitsubishi HC Capital UK PLC trading as Novuna Personal Finance |
| Product | Other regulated product |
| Claim type | Goods and services under S75 |
| Outcome | Upheld |
| Remedy | The lender must: (1) refund all repayments under the credit agreement and cancel any outstanding balance; (2) refund the difference between annual management charges paid under FC Membership 2 and what would have been paid under FC Membership 1; (3) deduct the value of promotional giveaways used and the market value of holidays taken using excess fractional points; (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) indemnify Mrs J and Mr J against ongoing liabilities if they hold or assign their fractional interest to the lender. |
Summary
Mrs J purchased Fractional Club membership (asset-backed timeshare with property share) for £5,446 in September 2019 using credit from the lender. She alleged the supplier breached Regulation 14(3) of the Timeshare Regulations by marketing membership as an investment offering financial gain and profit potential. The ombudsman examined the supplier's training materials, which presented membership as combining holiday rights with property ownership and future financial returns, and found Mrs J's testimony credible that she was told membership would provide profit and offset holiday costs. The ombudsman concluded the supplier's breach was material to Mrs J's decision to purchase and rendered the credit relationship unfair under Section 140A of the Consumer Credit Act 1974. The complaint was upheld and the lender was directed to refund all credit agreement repayments, refund excess management charges, add interest, and remove adverse credit information.
The Ombudsman's reasoning
The ombudsman found that the supplier's training materials and sales practices led Mrs J to believe Fractional Club membership was an investment offering financial gain. The materials presented membership as combining holiday rights with property ownership and future financial returns. Mrs J's testimony, corroborated by consistent evidence from multiple sources, demonstrated that the prospect of financial gain was a material motivating factor in her decision to purchase. The supplier's breach of Regulation 14(3) rendered the credit relationship unfair under Section 140A because Mrs J would not have entered into the credit agreement but for the misleading investment characterization. The ombudsman rejected the lender's arguments that the sales notes and lack of subsequent queries indicated otherwise, finding these were insufficient to outweigh the evidence of the supplier's marketing practices and Mrs J's consistent recollections.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Mitsubishi HC Capital UK PLC trading as Novuna Personal Finance, all decisions | 120 | 13% |
| Goods and services under S75, all decisions | 19,872 | 36% |
| Other regulated product, all decisions | 47,449 | 30% |
Source
Read the original decision on the Financial Ombudsman Service website