Partially upheld: Unfair application of charges and lack of informed consent complaint against LEASYS UK LTD

Decision detail

Summary

Mrs S complained about charges of £352.52 imposed by Leasys for replacement tyres on a car financed through a Personal Contract Hire agreement. When the car was serviced in September 2025, Mrs S was told the tyre work had been authorised by Leasys but was not informed she would be personally liable for the cost or given the option to decline. Although the ombudsman found the tyre damage fell outside the maintenance package, it upheld the complaint in part because Leasys failed to provide clear information before the work was carried out, depriving Mrs S of the opportunity to obtain cheaper repairs elsewhere. The charge was reduced to £176.26 (50% reduction) and Leasys was ordered to pay £50 compensation for distress and inconvenience.

The Ombudsman's reasoning

Although the tyre damage fell outside the maintenance package and Leasys was entitled in principle to recharge Mrs S, the key issue was whether Mrs S received clear and timely information before the work was carried out. The ombudsman found no contemporaneous evidence that Mrs S was informed she would be charged or given the option to decline. This deprived her of the opportunity to consider alternative, lower-cost repair options. Where a business arranges or authorises work resulting in a charge, it must ensure the consumer is aware of the cost and can make an informed decision. The ombudsman considered it fair to reduce the charge by 50% to reflect what Mrs S would likely have paid elsewhere, as the underlying damage was her responsibility.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website