Not upheld: settlement figure calculation and clarity of disclosure complaint against Toyota Financial Services (UK) PLC

Decision detail

Summary

Mr S complained that TFS provided an incomplete settlement figure when his financed vehicle was written-off in an accident. The settlement figure included only the vehicle finance agreement but excluded two separate personal loan agreements Mr S held with TFS that covered negative equity on previous vehicles. Mr S expected a full settlement figure covering all amounts owed to TFS and claimed TFS should have made it clear the figure related only to the car agreement. The ombudsman found that TFS acted reasonably in providing a settlement figure for the vehicle agreement only, as this is standard practice when settling written-off vehicles with insurers, and there was no evidence TFS agreed to or should have understood that Mr S was requesting settlement figures for all agreements.

The Ombudsman's reasoning

When a car is written-off, insurers only expect a settlement quote for the finance linked to that specific vehicle. Providing information about separate negative equity agreements would go beyond what is required and could cause confusion or delay. TFS acted in line with standard practice by providing a settlement figure for the vehicle agreement only. There was no persuasive evidence that TFS agreed or should have understood that Mr S was requesting settlement figures for all agreements rather than the vehicle agreement linked to the registration number provided. While clearer explanation may have avoided misunderstanding, the information provided was not misleading and TFS did not act unfairly.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website