Not upheld: PCP / HP mis-selling complaint against LEX AUTOLEASE LIMITED

Decision detail

Summary

Mrs S complained about an excess mileage charge of £2,406.26 applied by Lex Autolease when she returned a car after a 36-month hire agreement, arguing the charge was unfair despite having exceeded her 26,395-mile allowance by 13,641 miles. She also complained about the payment arrangement agreed to settle the charge, claiming it was unaffordable and that Lex failed to consider her vulnerability and personal circumstances. The ombudsman found that Mrs S accepted the contractual mileage terms and was aware of the excess mileage charges, and that Lex reasonably relied on information Mrs S voluntarily provided during the affordability assessment. The ombudsman concluded that the payment arrangement actually benefited Mrs S by allowing her to avoid a credit file default, which was her stated priority, and therefore did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that Mrs S accepted the contractual mileage allowance of 8,000 miles annually and was aware that exceeding this would incur charges. The agreement allowed for requests to modify the mileage allowance, but both parties had to agree and Mrs S and Lex did not reach agreement on this. Regarding the payment arrangement, the ombudsman found that Mrs S voluntarily provided information about her circumstances and was not prompted to amend her expenditure details; rather, she informed the agent that her husband would cover certain costs. The agent reasonably relied on the information Mrs S provided and confirmed her ability to afford £400 monthly payments. The ombudsman noted that Mrs S's personal difficulties were not disclosed during the call and that the alternative to the payment arrangement (a default on her credit file) was something Mrs S specifically wanted to avoid. Therefore, the arrangement actually benefited Mrs S by allowing her to pay the debt while protecting her credit file.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website