Not upheld: prevented exercise of statutory right to voluntary termination; service quality issues complaint against Santander Consumer (UK) Plc trading as Santander Consumer Finance

Decision detail

Summary

Mrs P complained that Santander prevented her from exercising her right to voluntarily terminate a conditional sale agreement for a car before the final balloon payment became due on 6 August 2025. She alleged she experienced poor customer service, long waiting times, and payment difficulties that prevented her from making the voluntary termination request. The ombudsman found that while Mrs P made contact attempts before the deadline, the evidence did not demonstrate that she made a clear request for voluntary termination or that Santander prevented such a request. The ombudsman noted an inconsistency in Mrs P's account, as she later stated she was unaware of the balloon payment, which contradicted her claim to have previously contacted Santander to avoid it. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied section 99 of the Consumer Credit Act 1974, which permits voluntary termination only before the final payment falls due. The key issue was whether Mrs P made a clear request for voluntary termination before 6 August 2025. While Mrs P made contact attempts, the evidence did not demonstrate what was discussed or establish that a clear voluntary termination request was communicated. The ombudsman found it difficult to reconcile Mrs P's statement on 13 August that she was unaware of the balloon payment with her alleged prior attempt to avoid it through voluntary termination. The service issues, while frustrating, were not shown to have caused Mrs P to lose the opportunity to exercise a right that had not been clearly communicated.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website