Not upheld: breach of contract / delivery failure and liability for credit agreement complaint against Hutchinson 3G UK Limited (trading as Three)

Decision detail

Summary

Mr M purchased a phone for approximately £900 using a fixed sum loan agreement with Three in October 2025. After the original delivery was lost, Three arranged a replacement to be delivered to a Pick-up Shop at Mr M's request. A courier left the package at the Pick-up Shop, where it was collected by someone presenting Mr M's driving licence. Mr M claims he never received the package and found it had already been collected when he attended the shop. Three declined to send another replacement or cancel the credit agreement, relying on evidence that the package had been collected. The ombudsman found on balance of probabilities that Three reasonably concluded the package was successfully delivered and acted fairly in holding Mr M liable for the loan.

The Ombudsman's reasoning

The ombudsman applied the balance of probabilities standard due to incomplete evidence. While acknowledging the possibility of theft or impersonation, the ombudsman found it reasonable for Three to conclude the package was likely successfully delivered, given that someone presented a valid driving licence and the package was collected from the location Mr M himself had requested. The ombudsman noted the informal nature of the FOS forum made it difficult to reach firm conclusions on serious allegations such as theft or identity fraud, which would be better suited to court proceedings with witness examination.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website