Not upheld: agreement validity and enforceability; unfair treatment during financial difficulty; signature validity complaint against Moneybarn No.1 Limited

Decision detail

Summary

Mr S complained that he could not recall signing a conditional sale agreement with Moneybarn for car financing and that the agreement he later received contained only a code rather than his signature, making it unenforceable. He also complained that Moneybarn did not provide adequate support when he fell into financial difficulty due to injury and job loss, leading to arrears and repossession proceedings. The ombudsman found that Moneybarn appropriately provided documentation including a welcome pack and agreement copy, that the electronic signature code was valid, that no agreement terms were changed, and that Moneybarn took reasonable steps to assist Mr S by requesting financial information and attempting contact. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman determined that Moneybarn appropriately provided documentation including a welcome pack and copy of the agreement. The electronic signature code constituted a valid signature as the agreement was electronically signed and Mr S acknowledged understanding this. Mr S should have raised concerns earlier given he accepted having an agreement and receiving the financed car. The 14-day cooling off period did not apply to Mr S's April 2025 withdrawal attempt as it had long expired. No evidence showed the interest terms were amended. Moneybarn took reasonable steps to support Mr S by requesting financial information and attempting multiple contact methods, though Mr S did not provide the requested information in time.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website