Upheld: unfair credit relationship under Section 140A CCA; breach of Regulation 14(3) of the Timeshare Regulations complaint against Clydesdale Financial Services Limited trading as Barclays Partner Finance
Financial Ombudsman decision DRN-6287479 of 2026-04-16T00:00:00+00:00. unfair credit relationship under Section 140A CCA; breach of Regulation 14(3) of the Timeshare Regulations complaint against Clydesdale Financial Services Limited trading as Barclays Partner Finance. Outcome: Upheld.
Decision detail
| Reference | DRN-6287479 |
|---|---|
| Decision date | 2026-04-16T00:00:00+00:00 |
| Firm | Clydesdale Financial Services Limited trading as Barclays Partner Finance |
| Product | timeshare finance (credit agreement) |
| Claim type | unfair credit relationship under Section 140A CCA; breach of Regulation 14(3) of the Timeshare Regulations |
| Outcome | Upheld |
| Remedy | The lender must: (1) Refund all of Mrs V's repayments under the Credit Agreement; (2) Refund the difference between Fractional Membership annual management charges and what European Collection membership charges would have been; (3) Deduct the value of promotional giveaways used and the market value of holidays taken using excess Fractional points (proportionately); (4) Add simple interest at 8% per annum to net repayments from the date each was made until settlement; (5) Remove adverse credit file information within six years; (6) If Fractional Membership is still in place, indemnify Mrs V against all ongoing liabilities provided she assigns or holds the Allocated Property interest for the lender. |
Summary
Mrs V and Mr V purchased Fractional Membership timeshare in December 2013 for £10,200, financed through a credit agreement with Clydesdale Financial Services Limited. Mrs V complained that the supplier marketed and sold the product as an investment in breach of Regulation 14(3) of the Timeshare Regulations, and that the lender participated in an unfair credit relationship. An FOS investigator upheld the complaint, and the lender requested an ombudsman's decision. The ombudsman found that Mrs V's evidence was consistent and compelling that the supplier told her Fractional Membership was an investment offering the prospect of profit, and that this must have been a motivating factor in her purchase decision since it provided no additional holiday entitlement. The ombudsman upheld the complaint and ordered the lender to refund all credit repayments, refund the difference in management charges, deduct the value of benefits received, add 8% simple interest, remove adverse credit file information, and indemnify Mrs V against ongoing liabilities.
The Ombudsman's reasoning
The ombudsman found that Regulation 14(3) of the Timeshare Regulations prohibited marketing or selling timeshare contracts as investments. Although Fractional Membership contained an investment element (the share in the Allocated Property), the prohibition relates to how the product was marketed and sold, not its mere existence. Mrs V's evidence was found to be consistent and compelling that the supplier marketed Fractional Membership as an investment with the prospect of profit. The purchase made no sense from a holiday entitlement perspective (as Mrs V already had sufficient points), so the supplier must have promoted the investment return as a reason to purchase. The disclaimers in the paperwork were provided after the sales presentation and decision to purchase, and would not have dissuaded someone who had been told the product was an investment. The ombudsman concluded the credit relationship was rendered unfair under Section 140A CCA due to the supplier's breach of the Timeshare Regulations.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Clydesdale Financial Services Limited trading as Barclays Partner Finance, all decisions | 92 | 3% |
Source
Read the original decision on the Financial Ombudsman Service website