Not upheld: section 75 Consumer Credit Act claim - declined as outside scope complaint against Lloyds Bank PLC

Decision detail

Summary

Mr S purchased holiday products (tourist periods) from Business B in June 2010 and July 2011, paying portions using his Lloyds credit card. In October 2024, he claimed under section 75 of the Consumer Credit Act 1974, alleging misrepresentation or breach of contract by the supplier. Lloyds declined the claim. The ombudsman upheld Lloyds' decision, finding that section 75 protection does not apply to purchases with a cash price exceeding £30,000, and both purchases exceeded this threshold according to the purchase agreements provided.

The Ombudsman's reasoning

Section 75 of the CCA provides protection for consumers purchasing goods and services on credit, but section 75(3)(b) explicitly excludes claims relating to items with a cash price exceeding £30,000. The purchase agreements clearly show the cash prices were €104,837.73 (June 2010) and €101,319.00 (July 2011), both substantially exceeding the £30,000 threshold. Mr S's assertion that the purchases comprised separate contracts or sub-products was not supported by evidence. Therefore, section 75 protection did not apply to either purchase, and Lloyds was entitled to decline the claim.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website