Upheld: Section 75 Consumer Credit Act claim - breach of contract for defective service complaint against Lloyds Bank PLC
Financial Ombudsman decision DRN-6342363 of 2026-05-07T00:00:00+00:00. Section 75 Consumer Credit Act claim - breach of contract for defective service complaint against Lloyds Bank PLC. Outcome: Upheld.
Decision detail
| Reference | DRN-6342363 |
|---|---|
| Decision date | 2026-05-07T00:00:00+00:00 |
| Firm | Lloyds Bank PLC |
| Product | credit card |
| Claim type | Section 75 Consumer Credit Act claim - breach of contract for defective service |
| Outcome | Upheld |
| Remedy | Lloyds must refund: (1) the full contract price of £3,250; (2) the removal cost of £5,000; (3) the surveyor's report cost of £1,440. Interest at 8% simple per annum should be added to all payments from the date Lloyds declined the Section 75 claim to the date of settlement. |
Summary
Mr H purchased spray foam insulation for £3,250 using a Lloyds credit card in June 2021. After removing it in February 2024 at a cost of £5,000, he claimed under Section 75 of the Consumer Credit Act 1974, supported by a detailed Chartered Surveyor's report identifying multiple breaches of BBA certificate requirements and failure to exercise reasonable care and skill. Lloyds declined the claim on the basis that the product had been removed and independent inspection was no longer possible. The ombudsman upheld the complaint, finding Lloyds acted unfairly by not properly considering the expert evidence, which was sufficiently detailed and unchallenged. Lloyds was ordered to refund the contract price (£3,250), removal cost (£5,000), and surveyor's report cost (£1,440), plus 8% simple interest from the date of claim decline.
The Ombudsman's reasoning
The ombudsman found that Lloyds' response was too narrow in dismissing the claim solely because the spray foam had been removed. The surveyor's report provided sufficiently detailed and fact-specific evidence of breaches of the BBA certificate requirements and failure to exercise reasonable care and skill. The report accurately quoted relevant BBA certificate sections and explained why each was not complied with, supported by photographs. There was no independent expert evidence rebutting these points. Although the inspection occurred after removal, this did not justify disregarding the report. The ombudsman applied the Consumer Rights Act 2015 which implies a term that services be provided with reasonable care and skill, assessed by reference to industry standards. On balance of probabilities, there was sufficient evidence to show S breached the contract, making Lloyds' decline of the Section 75 claim unfair.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Lloyds Bank PLC, all decisions | 19,826 | 16% |
Source
Read the original decision on the Financial Ombudsman Service website