Upheld: Service failures generally complaint against Shop Direct Finance Company Limited (trading as very)

Decision detail

Summary

Mrs H purchased items from Very in July 2025 and returned one item costing £799, but the refund was delayed approximately four months despite her numerous requests. The complaint involved two entities: SDHSL (the retailer) and SDFCL (the finance provider). The ombudsman upheld the complaint, finding that the retailer's failure to refund within the required 14 days breached consumer credit law, making the finance provider liable. However, as SDHSL had already paid £250 in compensation for the inconvenience and delayed credit, the ombudsman determined no further action was necessary.

The Ombudsman's reasoning

The ombudsman found that SDHSL's failure to refund within 14 days of return constitutes a breach of contract, for which SDFCL can be held responsible under the Consumer Credit Act. Although Mrs H suffered no financial loss as the item was purchased on a buy now pay later basis, she suffered inconvenience from the delayed credit and numerous requests. The £250 compensation already paid by SDHSL is considered fair and reasonable for this inconvenience.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website