Not upheld: Other regulated complaint complaint against Tesco Personal Finance Limited

Decision detail

Summary

Mr M complained about a fixed sum loan agreement with TPFL taken out in April 2025 to finance a car insurance policy, arguing that TPFL did not offer alternative or cheaper credit options and raising concerns about costs, agreement structure, and information disclosure. The ombudsman reviewed the loan agreement and found that all costs, terms, and necessary information were clearly and prominently presented, allowing Mr M to make an informed choice, and that TPFL was not required to offer interest-free instalments. The ombudsman determined that the inclusion of insurance premium tax in the repayment amount was reasonable as it is a standard charge on general insurance policies. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman reviewed the loan agreement and found that all costs, terms, and necessary information were prominently and clearly set out, allowing Mr M to make an informed choice. The ombudsman determined that TPFL was not required to offer interest-free instalments, and Mr M could have chosen not to proceed if unhappy with the terms. The inclusion of insurance premium tax in the repayment amount was not unreasonable as it is a standard charge on general insurance policies and formed part of the borrowed amount.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website