Not upheld: Irresponsible lending complaint against AO Retail Limited

Decision detail

Summary

Mr S complained that AO Retail Limited mis-sold him a credit agreement with lender T for a Buy Now Pay Later purchase in 2022. Mr S alleged that T incorrectly charged him interest when he tried to pay off the BNPL balance. The ombudsman determined that AO's role was limited to credit broking activities and found that the information AO provided about BNPL terms was accurate and matched the terms in the credit agreement signed by Mr S. The issue of T's system preventing full payment of BNPL balances was a matter of how the lender administered the agreement, not how AO sold it. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman determined that AO's role was limited to credit broking activities - introducing the customer to the lender and helping with preparatory work. The information provided by AO about BNPL terms was accurate and matched the terms in the credit agreement. The issue of T's system preventing full payment of BNPL balances was a matter of how T administered the agreement, not how AO sold it, and was therefore outside the scope of the complaint against AO.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website