Upheld: breach of contract - failure to install service with reasonable care and skill; section 75 Consumer Credit Act claim complaint against Propensio Finance Limited
Financial Ombudsman decision DRN-6338864 of 2026-05-07T00:00:00+00:00. breach of contract - failure to install service with reasonable care and skill; section 75 Consumer Credit Act claim complaint against Propensio Finance Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6338864 |
|---|---|
| Decision date | 2026-05-07T00:00:00+00:00 |
| Firm | Propensio Finance Limited |
| Product | fixed sum loan |
| Claim type | breach of contract - failure to install service with reasonable care and skill; section 75 Consumer Credit Act claim |
| Outcome | Upheld |
| Remedy | Propensio Finance Limited must: (1) cancel Mrs S's loan agreement if still active and ensure no adverse information is recorded on her credit file; (2) refund all repayments Mrs S has made under the loan agreement; (3) apply 8% simple interest per annum to these refunds from the date each payment was made until settlement; (4) arrange for removal of the spray foam at no cost to Mrs S within a reasonable time period, potentially using one of the three quotes provided by Mrs S. Propensio must provide tax deduction certificate if required by HMRC. |
Summary
Mrs S financed spray foam insulation installation in her loft space through a fixed sum loan with Propensio Finance Limited. In 2024, she was notified of potential mis-selling and obtained independent inspections which revealed the spray foam had been installed to a very poor standard in breach of the BBA Agrement and without reasonable care and skill. Three expert reports identified multiple defects including application to heat-emitting devices, gaps, inconsistent thickness, and failure to provide adequate ventilation. Propensio declined Mrs S's section 75 claim, arguing no damage had occurred and relying on self-certification. The ombudsman upheld the complaint, finding Propensio liable under section 75 for the supplier's breach of contract, and ordered full refund of loan payments plus interest, loan cancellation, credit file correction, and removal of the spray foam at Propensio's cost.
The Ombudsman's reasoning
The ombudsman applied section 75 of the Consumer Credit Act 1974, which provides consumers with recourse against lenders for breaches of contract by suppliers. The Consumer Rights Act 2015 implies a term that services must be provided with reasonable care and skill, assessed by reference to industry standards. Three independent expert reports consistently identified significant failings in the spray foam installation, including: application to heat-emitting devices in breach of BBA Agrement requirements; gaps and inconsistent thickness; failure to provide adequate ventilation despite it being essential; and creation of a hybrid insulation system without proper safeguards. The ombudsman cross-referenced the reports against the BBA Agrement and found clear breaches. The ombudsman rejected repeat performance as a remedy due to the extent of the defects and lack of persuasive evidence that remedial works could fully address all problems. A 100% price reduction was deemed appropriate, requiring full refund of loan payments plus interest, loan cancellation, and removal of the spray foam at the lender's cost.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Propensio Finance Limited, all decisions | 18 | 44% |
Source
Read the original decision on the Financial Ombudsman Service website