Not upheld: time-barred Section 75 claim; undisclosed commission; alleged unfair credit relationship complaint against Mitsubishi HC Capital UK PLC trading as Novuna Personal Finance

Decision detail

Summary

Mrs B complained that Mitsubishi HC Capital UK PLC (trading as Novuna Personal Finance) acted unfairly by being party to an unfair credit relationship and by declining a Section 75 claim regarding alleged misrepresentations by a timeshare supplier. Mrs B had financed a £10,694 timeshare purchase in October 2011 but did not raise complaints until May 2023, over 11 years later. The ombudsman found the Section 75 claim time-barred under the Limitation Act 1980 (six-year limitation period from 25 October 2011) and rejected arguments that Section 32 applied due to alleged concealment. The ombudsman also rejected the commission complaint, finding no fiduciary duty was owed by the Supplier and that Mrs B would have proceeded with the loan regardless of commission disclosure. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the Limitation Act 1980, which provides a six-year limitation period for misrepresentation claims. The cause of action arose on 25 October 2011 when Mrs B entered into the agreements, and the claim was raised on 11 May 2023, exceeding the six-year limit. The ombudsman rejected the Section 32 argument regarding fraud or concealment, finding no evidence of deliberate concealment or the four elements required for fraudulent misrepresentation. Regarding the commission complaint, the ombudsman found the Supplier did not owe Mrs B a fiduciary duty as it was acting as a seller of timeshares, not as her agent. The commission level (10.25%) was not disproportionate, and Mrs B would have proceeded with the loan regardless of commission disclosure since she wanted the timeshare and had no alternative means to pay.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website