Not upheld: repossession following default on hire purchase payments complaint against Go Car Credit Limited

Decision detail

Summary

Miss T complained about the repossession of a car supplied under a hire purchase agreement with Go Car Credit Limited after she failed to make all 48 agreed monthly payments of £371.05, resulting in arrears of £3,079.11 by September 2025. Go Car Credit provided Miss T with written notice of the repossession risk and offered alternatives including payment arrangements and voluntary surrender, but Miss T did not engage with these options or make payments to clear the arrears. The car was repossessed in September 2025 following contact from Go Car Credit's recovery agent. The ombudsman found that Go Car Credit acted fairly and within the agreement terms, provided proper notice, made reasonable contact attempts, and was entitled to report the repossession accurately to credit reference agencies. The complaint was not upheld and no remedy was ordered.

The Ombudsman's reasoning

The ombudsman found that Miss T had agreed to make 48 monthly payments but failed to make all payments when due. Go Car Credit provided Miss T with written notice of the risk of repossession and offered alternatives including payment arrangements, voluntary surrender, and voluntary termination. Although Miss T claims she tried to contact Go Car Credit about a payment plan, there is no evidence she made a payment to clear arrears or formally requested a payment arrangement. The ombudsman considered it reasonable to expect Miss T to have done more to contact Go Car Credit. The letters were correctly addressed and Go Car Credit's recovery agent made contact with Miss T. The ombudsman found that Go Car Credit was required to report accurate information to credit reference agencies and that termination and repossession were justified by Miss T's default.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website