Upheld: Goods and services under S75 complaint against Creation Consumer Finance Limited

Decision detail

Summary

Miss B financed a bathroom purchase through Creation in January 2024, which was installed in April 2024. Following installation, she reported problems with flooring and concerns about the shower unit's suitability. While D accepted liability for flooring defects and offered repair or price reduction, Miss B sought further remedy from Creation under Section 75 of the Consumer Credit Act 1974. The ombudsman found no misrepresentation (as Miss B had clear pre-contract quotes and sketches) and that D's remedial offer complied with Consumer Rights Act requirements. The shower complaint failed because it was correctly installed per agreed plans and the basin change occurred post-contract. Creation's £600 compensation for its handling of the claim was upheld as fair.

The Ombudsman's reasoning

The ombudsman applied Section 75 of the Consumer Credit Act 1974 and the Consumer Rights Act 2015 to assess Creation's liability. No misrepresentation was found because Miss B received clear quotes and sketches before entering the contract, and the shower tray change occurred after contract formation. A breach of contract was identified regarding flooring and finishing works, but D's offer of repair or price reduction aligned with CRA remedies, making Creation's liability assessment reasonable. The shower unit was installed correctly per agreed plans, so no breach occurred regarding that component. Compensation for distress and inconvenience was limited as courts do not generally award damages for inconvenience in building cases unless there is significant physical distress. Creation's £600 compensation for its handling of the claim was deemed fair.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website