Not upheld: unfair default and termination; inadequate forbearance complaint against BMW FINANCIAL SERVICES (GB) LIMITED trading as ALPHERA Financial Services

Decision detail

Summary

Ms M complained that BMWFS unfairly defaulted and terminated her hire purchase agreement despite her attempts to address arrears and requests for forbearance following storm damage to her home in 2025. Ms M proposed spreading arrears over the remaining term or extending the agreement, but BMWFS declined. An income and expenditure assessment showed Ms M had insufficient disposable income and the arrears remained outstanding for many months. The ombudsman found BMWFS did not act unfairly, as it engaged with Ms M for several months and followed appropriate legal process before terminating the agreement based on unsustainable repayment proposals. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that while Ms M experienced genuine financial difficulties from storm damage, the account remained in significant arrears for many months. The income and expenditure assessment showed Ms M had insufficient disposable income, making the proposed repayment arrangements unsustainable. BMWFS did not move immediately to enforcement action but continued to engage with Ms M for several months before issuing the default notice. The firm followed appropriate legal process before terminating the agreement.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website