Partially upheld: service mishandling, poor communication, delays in complaint handling complaint against ZenAuto Limited trading as ZenAuto

Decision detail

Summary

Mr A complained that ZenAuto mishandled matters following a total loss claim on his hire agreement car. After insurance settlement, a shortfall of £1,232.62 remained, which ZenAuto pursued under the agreement terms. Mr A alleged delays, poor communication, failure to return calls, and incorrect information caused prolonged distress. ZenAuto acknowledged service failings and offered £350 compensation. The ombudsman upheld the complaint in part, finding the shortfall claim valid but the service failings genuine, and determined that ZenAuto's £350 compensation offer was fair and reasonable for the distress and inconvenience caused.

The Ombudsman's reasoning

The ombudsman agreed with the investigator that the hire agreement terms clearly allowed ZenAuto to pursue the shortfall following insurance settlement, and there was no evidence the shortfall was calculated incorrectly or that ZenAuto acted unfairly in seeking recovery. However, service failings were identified including delays, failure to return calls, and incorrect information. While these failings fell below expected standards and caused frustration and inconvenience, there was insufficient evidence of significant financial loss or particularly severe consequences. The £350 compensation was considered fair and reasonable for the distress and inconvenience caused.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website