Not upheld: Buy-now-pay-later complaint against Creation Consumer Finance Limited

Decision detail

Summary

Mr L complained that Creation Consumer Finance Limited failed to adequately inform him about how a Buy Now Pay Later agreement would operate, specifically regarding how interest would be calculated and added to his account. Mr L purchased computer equipment in January 2025 using a BNPL agreement with a 12-month interest-free period, but did not repay the balance before the special offer date, resulting in £435.06 in backdated interest being added to his £1,455 balance. The ombudsman found that Creation had provided sufficient information through the original credit agreement signed in 2023, monthly statements, and email reminders to allow Mr L to understand how the product would operate. The ombudsman concluded that while an explicit interest calculation might have been helpful, it was not required, and the information provided was sufficiently clear for Mr L to be aware of the terms. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman concluded that Mr L had been provided with sufficient information to understand how the BNPL product would operate. The original agreement signed in 2023 explained how interest would be calculated and added to the credit amount, which would then be divided into equal monthly repayments. The monthly statements and email reminders reinforced this information. While the ombudsman acknowledged that an explicit calculation of the interest amount might have been helpful, it was not a requirement. The information provided was sufficiently clear for Mr L to be aware of how his account would operate, and Creation's actions were in line with the agreed terms and conditions.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website