Not upheld: connected lender liability under Section 75 of the Consumer Credit Act 1974; alleged misrepresentation and breach of contract by supplier; unfair credit relationship under Section 140A; undisclosed commission complaint against Mitsubishi HC Capital UK Plc

Decision detail

Summary

Mr R purchased Fractional Club timeshare membership for £15,130 in January 2019, financed through a loan from the Lender. He later complained that he was tricked into the purchase, misled about investment returns and holiday access, and not informed about a £605.20 commission paid to the Supplier. After the Lender rejected his complaints, Mr R referred the matter to the Financial Ombudsman Service. The ombudsman found no actionable misrepresentation, no breach of contract, and no material impact from the undisclosed commission, concluding that Mr R would have proceeded with the purchase regardless. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found no actionable misrepresentation by the Supplier. Statements about investment appreciation were opinions honestly held, not false statements of fact. Regarding holiday access, the ombudsman found no evidence of breach of contract as availability was subject to demand. The ombudsman rejected arguments about insufficient information disclosure, finding no material impact on Mr R's decision to purchase. Regarding undisclosed commission, the ombudsman found the Supplier did not owe Mr R a fiduciary duty and the commission level (4%) was not disproportionate. The ombudsman concluded Mr R would have proceeded with the purchase regardless of disclosure of these matters.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website