Upheld: Unfair rejection of Section 75 claim; breach of contract by supplier (defective installation); failure to exercise reasonable care and skill complaint against Propensio Finance Limited
Financial Ombudsman decision DRN-6353071 of 2026-05-15T00:00:00+00:00. Unfair rejection of Section 75 claim; breach of contract by supplier (defective installation); failure to exercise reasonable care and skill complaint against Propensio Finance Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6353071 |
|---|---|
| Decision date | 2026-05-15T00:00:00+00:00 |
| Firm | Propensio Finance Limited |
| Product | fixed sum loan |
| Claim type | Unfair rejection of Section 75 claim; breach of contract by supplier (defective installation); failure to exercise reasonable care and skill |
| Outcome | Upheld |
| Remedy | Propensio must: (1) Cancel the loan agreement at no cost to Miss P if still active; (2) Refund all payments Miss P made under the agreement; (3) Refund the £500 deposit; (4) Refund £4,750 for removal costs; (5) Refund £1,440 for H's report; (6) Ensure no adverse credit file information is recorded; (7) Add 8% simple interest per annum from the date of declining the Section 75 claim to the date of settlement on all refunds. |
Summary
Miss P financed spray foam loft insulation through a fixed sum loan with Propensio. The installation was defective, installed in direct contact with the chimney stack and electrical cables, without required vapour control layers, and resulted in elevated moisture levels in timber indicating condensation risk. A Chartered Surveyor's detailed report concluded the foam should be removed to prevent property damage. When Miss P claimed under Section 75 of the Consumer Credit Act 1974, Propensio declined the claim and offered only warranty works. The ombudsman found Propensio's rejection unfair, as the surveyor's evidence was compelling and detailed compared to the supplier's less persuasive response. The ombudsman upheld the complaint and ordered Propensio to refund the full contract price, removal costs (£4,750), the surveyor's report (£1,440), cancel the loan, and add 8% interest.
The Ombudsman's reasoning
The ombudsman found that H's report provided detailed, fact-specific evidence of multiple breaches of the KIWA Certificate and BS5250 standards, including direct contact with the chimney stack and electrical cables, absence of required vapour control layers, and elevated moisture levels in timber indicating interstitial condensation risk. L's response was less detailed and difficult to follow. H was a professionally qualified, independent Chartered Surveyor who had visited the property and compiled the report based on that visit. The ombudsman concluded there was sufficient evidence to show L breached the contract to provide services with reasonable care and skill, making Propensio's rejection of the Section 75 claim unfair. The appropriate remedy was a 100% price reduction under the Consumer Rights Act 2015, plus refunds for removal costs and the surveyor's report.
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