Upheld: Service failures generally complaint against RCI Financial Services Limited

Decision detail

Summary

Mrs K complained about poor service from RCI Financial Services Limited regarding two hire purchase agreements for vehicles. During a period when Mrs K was dealing with a severe health condition, she received inconsistent information from different RCI advisors, experienced delays and unclear communications about payment arrangements, and was issued a default notice in June 2025 when she was attempting to engage with RCI regarding payment. The ombudsman upheld the complaint, finding that RCI fell short of expected service standards, should have been more empathetic given Mrs K's vulnerability, and could have given more time before issuing the default notice. RCI was directed to pay £350 compensation for distress and inconvenience, write off the £500 outstanding balance, and remove the default from Mrs K's credit file.

The Ombudsman's reasoning

The ombudsman found that RCI fell short of expected service standards on multiple occasions. RCI's own review acknowledged poor internal communication and service failings. The ombudsman was persuaded that RCI should have responded more empathetically, been more open to working with Mrs K regarding her medical condition, and provided clearer information about agreed payment dates. Critically, the ombudsman found that RCI could have given more time before issuing the default notice and terminating the agreement, particularly given the poor service Mrs K had received and her personal circumstances. The confusion and unclear communications likely affected Mrs K's expectations and actions. While the ombudsman acknowledged RCI followed the contractual process, they did not act fairly and reasonably considering the wider circumstances.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website