Upheld: unfair credit relationship under section 140A CCA; section 75 CCA claim; mis-selling of investment product complaint against First Holiday Finance Limited
Financial Ombudsman decision DRN-6349754 of 2026-05-11T00:00:00+00:00. unfair credit relationship under section 140A CCA; section 75 CCA claim; mis-selling of investment product complaint against First Holiday Finance Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6349754 |
|---|---|
| Decision date | 2026-05-11T00:00:00+00:00 |
| Firm | First Holiday Finance Limited |
| Product | credit agreement / consumer finance |
| Claim type | unfair credit relationship under section 140A CCA; section 75 CCA claim; mis-selling of investment product |
| Outcome | Upheld |
| Remedy | Pay £16,182.57 to the professional representative's client account; cancel any outstanding balance under the Credit Agreement; remove adverse credit file information relating to the Credit Agreement; pay 8% simple interest per annum on £16,182.57 from the date of the decision to settlement. |
Summary
Mrs M and Mr S purchased Fractional Club timeshare membership financed through a credit agreement with First Holiday Finance Limited. The membership was asset-backed, providing investment benefits including a share in property sale proceeds, which violated regulations prohibiting regulated timeshares from being marketed as investments. After the Lender initially rejected their complaint, the Ombudsman's inquiry prompted the Lender to reconsider and offer a £16,182.57 refund and cancellation of the credit agreement. The Ombudsman upheld the complaint and ordered the Lender to fulfil this offer, remove adverse credit information, and pay interest.
The Ombudsman's reasoning
The Ombudsman found that once the Lender reconsidered its position and made an offer which Mrs M and Mr S accepted and acted upon by surrendering their fractional points, it would be fair to direct the Lender to fulfil that offer. The Ombudsman's inquiry about what Mrs M and Mr S had gained other than an investment prompted the Lender's reconsideration, suggesting the Lender's initial position was untenable.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| First Holiday Finance Limited, all decisions | 19 | 21% |
Source
Read the original decision on the Financial Ombudsman Service website