Not upheld: Section 75 claim handling, unfair credit relationship, undisclosed commission complaint against Mitsubishi HC Capital UK PLC trading as Novuna Personal Finance

Decision detail

Summary

Mr G purchased a timeshare membership for £12,494 on 15 April 2015, financed by a loan from the Lender. In December 2022, more than seven years later, Mr G raised complaints including a Section 75 misrepresentation claim against the Lender, alleging the Supplier made false representations about the timeshare. The Lender rejected the complaint, citing the limitation period. The ombudsman found the Section 75 claim was time-barred under the Limitation Act 1980, as it was raised more than six years after the cause of action arose. The ombudsman rejected arguments that fraud or concealment exceptions applied, finding no evidence of deliberate concealment or fraudulent misrepresentation meeting legal requirements. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the Limitation Act 1980, which provides a six-year limitation period for claims based on misrepresentation. The cause of action arose on 15 April 2015 when Mr G entered into the agreements. The Section 75 claim was raised on 5 December 2022, more than six years later, placing it outside the limitation period. The ombudsman rejected arguments that Section 32 of the Limitation Act applied (fraud or concealment exceptions), finding no evidence of deliberate concealment or fraudulent misrepresentation meeting the required legal elements. The ombudsman also found no evidence of commission payment at the time of sale and no fiduciary duty owed by the Supplier.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website