Not upheld: Credit file / adverse marker disputes complaint against Go Car Credit Limited (GCC)

Decision detail

Summary

Mr I complained that GCC gave him incorrect information about an insurance settlement following a total loss of a financed vehicle in September 2024. After receiving a £4,200 insurance payout, Mr I used £3,300 of the funds towards purchasing another vehicle without directing payment to GCC as required by the hire purchase agreement. GCC subsequently reported the account as in arrears and issued default notices. The ombudsman found that the agreement terms clearly required insurance payouts to be directed to GCC, that Mr I was aware of these obligations, and that GCC's system notes accurately documented Mr I informing them in October 2024 that he had already used the funds. The complaint was not upheld as Mr I was found to be in breach of the agreed terms.

The Ombudsman's reasoning

The ombudsman found that the hire purchase agreement terms clearly required Mr I to direct any insurance payout to GCC to settle the outstanding balance. The agreement explicitly authorized insurers to pay monies directly to GCC. GCC's system notes documented that Mr I informed them in October 2024 that he had already used the insurance funds towards another vehicle, indicating he was aware of his obligations. Mr I provided no persuasive evidence to contradict GCC's records. Therefore, Mr I was in breach of the agreed terms. The ombudsman considered it reasonable for GCC to expect repayment of the outstanding balance and to report the position accurately to credit reference agencies in accordance with ICO principles.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website