Upheld: Section 75 claim - breach of contract and failure to provide services with reasonable care and skill complaint against Bank of Scotland plc trading as Halifax
Financial Ombudsman decision DRN-6342447 of 2026-05-07T00:00:00+00:00. Section 75 claim - breach of contract and failure to provide services with reasonable care and skill complaint against Bank of Scotland plc trading as Halifax. Outcome: Upheld.
Decision detail
| Reference | DRN-6342447 |
|---|---|
| Decision date | 2026-05-07T00:00:00+00:00 |
| Firm | Bank of Scotland plc trading as Halifax |
| Product | credit card |
| Claim type | Section 75 claim - breach of contract and failure to provide services with reasonable care and skill |
| Outcome | Upheld |
| Remedy | Halifax must: (1) refund the full contract price of £4,986; (2) refund the removal cost of £4,300; (3) refund the expert report cost of £1,200; (4) pay 8% simple interest per annum on all amounts from the date Halifax declined the Section 75 claim to the date of settlement; (5) provide tax deduction certificate if required by HMRC. |
Summary
Mr F purchased spray foam insulation for £4,986 in March 2021 using a Halifax credit card. He removed it in October 2022 due to concerns about mortgage lending and safety issues. When the CMC submitted a Section 75 claim in March 2024, Halifax declined it citing lack of point-of-sale documents and objecting to the timing of the expert report. A Chartered Surveyor's detailed report identified multiple breaches of the BBA certificate requirements and failure to install with reasonable care and skill. The ombudsman found Halifax's response too narrow and that the expert evidence was sufficiently compelling to show a breach of contract. Halifax was directed to refund £4,986 (contract price), £4,300 (removal cost), and £1,200 (expert report cost), plus 8% simple interest from the date of declination.
The Ombudsman's reasoning
The ombudsman found that Halifax's response was too narrow in dismissing the Section 75 claim without properly considering the detailed expert evidence provided. The Chartered Surveyor's report was sufficiently detailed and fact-specific, accurately quoting and explaining multiple breaches of the BBA certificate requirements. Although the inspection occurred after removal, this did not warrant disregarding the report. The report provided compelling evidence that the installation was not carried out with reasonable care and skill, constituting a breach of contract under the Consumer Rights Act 2015. Halifax should have engaged with the specific contents of the report rather than relying on procedural objections.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Bank of Scotland plc trading as Halifax, all decisions | 143 | 9% |
Source
Read the original decision on the Financial Ombudsman Service website