Not upheld: misleading information and obstruction of voluntary termination rights complaint against BMW FINANCIAL SERVICES (GB) LIMITED trading as ALPHERA Financial Services

Decision detail

Summary

Mr S complained that BMWFS unfairly refused to allow him to voluntarily terminate his Personal Contract Purchase agreement after the firm's online system generated a voluntary termination quote for £1,382.74. BMWFS explained the quote was issued in error because all scheduled repayments had been made and only the optional final payment remained. The ombudsman found that while BMWFS provided incorrect and misleading information, Mr S had not suffered financial loss as the car was due to be returned within weeks, and BMWFS' payment of £75 compensation was fair and reasonable. The complaint was not upheld.

The Ombudsman's reasoning

While the ombudsman acknowledged that Mr S reasonably believed voluntary termination was available based on the quote generated by BMWFS' system, the generation of the quote did not establish a legal right to terminate. The ombudsman found BMWFS' explanation that the quote was issued in error was plausible and consistent with available information. Even if voluntary termination remained available in principle under the Consumer Credit Act 1974, Mr S had not demonstrated financial loss, as the car was due to be returned within weeks and voluntary termination would not have relieved him of all subsequent charges. The ombudsman concluded that BMWFS' payment of £75 compensation for the confusion and inconvenience was fair and reasonable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website