Not upheld: connected lender liability (Section 75 CCA), unfair credit relationship (Section 140A CCA), undisclosed commissions complaint against Shawbrook Bank Limited

Decision detail

Summary

Mr and Mrs L complained that Shawbrook Bank Limited acted unfairly by being party to an unfair credit relationship and by rejecting their Section 75 CCA claims for misrepresentation and breach of contract relating to three timeshare purchases financed between 2012 and 2014. They also complained about undisclosed commissions paid to the Supplier. The ombudsman found the misrepresentation claims were time-barred under the Limitation Act 1980, as the six-year limitation period had expired before the complaint was raised in November 2022. The breach of contract claim failed due to lack of evidence that the Supplier's administration prevented use of the memberships. The commission complaint was rejected as the levels were not disproportionate and Mr and Mrs L would have proceeded with the loans regardless of disclosure. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Section 75 CCA claims for misrepresentation were time-barred under the Limitation Act 1980, as more than six years had passed between the Time of Sale (February 2014) and when the complaint was first raised (November 2022). Regarding breach of contract claims, there was no evidence that Mr and Mrs L could no longer use their memberships or were denied their share in net sale proceeds despite the Supplier's administration. On the commission complaint, the ombudsman found the commission levels were not disproportionate (10.25% of borrowed amount), Mr and Mrs L would have proceeded with the loans regardless of disclosure, and the Supplier did not owe a fiduciary duty as it was acting as seller, not as an agent for the consumers.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website