Not upheld: unfair credit relationship; alleged misrepresentation; alleged improper investment marketing; alleged irresponsible lending complaint against Shawbrook Bank Limited

Decision detail

Summary

Mrs L complained that Shawbrook Bank acted unfairly by financing a Fractional Club timeshare membership purchased in April 2015 for £12,700, claiming the membership was misrepresented, sold as an investment in breach of regulations, sold under pressure, and that lending was irresponsible given their retired status and low income. The ombudsman found no evidence supporting these claims, noting that Mrs L's investment concerns were only raised in 2023 after a relevant court judgment and were not mentioned when she surrendered the membership in 2016. The ombudsman concluded that even if investment marketing regulations had been breached, it did not impact the purchase decision, and that Shawbrook's lending assessment based on pension income was reasonable and borne out by successful repayment. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found insufficient evidence to support Mrs L's claims of misrepresentation, improper investment marketing, or pressure. The ombudsman noted that Mrs L's recollections about investment aspects appeared coloured by the later High Court judgment and were not mentioned in prior correspondence. The ombudsman found that even if Regulation 14(3) had been breached, it did not impact the purchase decision as Mr and Mrs L were primarily motivated by the shorter membership term and prospect of financial return, not profit-making. Regarding lending, the ombudsman found Shawbrook's assessment of pension income as sufficient was reasonable and borne out by successful repayment history. The ombudsman concluded the credit relationship was not unfair.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website