Upheld: unfair credit relationship arising from breach of timeshare marketing regulations; irresponsible lending complaint against Clydesdale Financial Services Limited trading as Barclays Partner Finance
Financial Ombudsman decision DRN-6358458 of 2026-06-01T00:00:00+00:00. unfair credit relationship arising from breach of timeshare marketing regulations; irresponsible lending complaint against Clydesdale Financial Services Limited trading as Barclays Partner Finance. Outcome: Upheld.
Decision detail
| Reference | DRN-6358458 |
|---|---|
| Decision date | 2026-06-01T00:00:00+00:00 |
| Firm | Clydesdale Financial Services Limited trading as Barclays Partner Finance |
| Product | timeshare finance (credit agreement) |
| Claim type | unfair credit relationship arising from breach of timeshare marketing regulations; irresponsible lending |
| Outcome | Upheld |
| Remedy | The lender must: (1) refund all repayments under the credit agreement and cancel any outstanding balance; (2) refund annual management charges paid; (3) deduct the value of promotional giveaways used and the market value of holidays taken (or alternatively, deduct corresponding annual management charges); (4) add simple interest at 8% per annum from the date each repayment was made until settlement; (5) remove adverse credit file information recorded within six years of the decision. |
Summary
Mrs S and Mr S purchased a Signature membership (asset-backed timeshare) in December 2014 for £21,417, financed through a credit agreement with Clydesdale Financial Services Limited. The membership included a share in the net sale proceeds of a property after the membership term. Mrs S complained in May 2018 that the supplier had marketed the membership as an investment in breach of Regulation 14(3) of the Timeshare Regulations, and that the lender had unfairly rejected her Section 75 claims. The ombudsman upheld the complaint, finding that the supplier's training materials, sales practices, and the inherent nature of fractional ownership indicated the supplier likely implied future financial returns were a good reason to purchase. Mrs S's testimony that she was led to believe it was an investment was plausible and material to her decision. The ombudsman ordered the lender to refund all repayments, cancel any outstanding balance, refund management charges, deduct the value of holidays taken, add 8% simple interest, and remove adverse credit file information.
The Ombudsman's reasoning
The ombudsman found that although Signature membership contained an investment element (share in property sale proceeds), Regulation 14(3) prohibited marketing or selling it as an investment. The supplier's training materials, sales practices, and the inherent nature of fractional ownership (offering 'money back' and property rights) indicated the supplier likely implied future financial returns were a good reason to purchase. Mrs S's testimony that she was led to believe it was an investment offering better financial gain was plausible and consistent with the supplier's practices. The breach was material to Mrs S's decision to purchase, as the investment prospect was a defining feature distinguishing it from standard timeshare. Disclaimers in post-sale documentation could not undo the impact of the sales presentation. Therefore, the credit relationship was rendered unfair under Section 140A of the CCA.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Clydesdale Financial Services Limited trading as Barclays Partner Finance, all decisions | 92 | 3% |
Source
Read the original decision on the Financial Ombudsman Service website