Not upheld: contract termination and procedural fairness in consumer hire agreement complaint against Green Switch Limited trading as Blike

Decision detail

Summary

X complained that Blike unfairly terminated a regulated consumer hire agreement for a bike after it was executed, arguing that the credit check should have been completed before signing. X paid £99 upfront but Blike refunded it after X failed the soft credit check and refused to continue with the hire. X also complained about a tense telephone call with Blike. The ombudsman found that although the agreement was executed before the credit check, Blike acted fairly in terminating it quickly and refunding X's payment immediately, minimizing the impact since X had not yet received the bike. The ombudsman determined that X would have been disappointed regardless of the timing of the credit check, as Blike would have declined the hire in any event, and found no misinformation in the telephone communication.

The Ombudsman's reasoning

The ombudsman determined that although the agreement was executed before the credit check, Blike had the right to end the agreement. The ombudsman focused on whether Blike treated X fairly rather than on legal technicalities about breach of contract, which are matters for civil courts. The ombudsman found it fair that Blike communicated quickly about the termination, refunded the payment immediately, and minimized the impact on X since X had not yet received the bike. The ombudsman noted that X would have been disappointed regardless of when the credit check was conducted, as Blike would have declined the hire in any event. Regarding the telephone call, the ombudsman found no misinformation was provided and acknowledged Blike's feedback to staff about the call handling.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website