Not upheld: Goods and services under S75 complaint against Clydesdale Financial Services Limited trading as Barclays Partner Finance

Decision detail

Summary

Mrs O purchased a Fractional Club timeshare membership in January 2015 for £13,898, financed through a credit agreement with Barclays PF. She alleged the Supplier misrepresented the investment value and holiday access rights of the timeshare. Mrs O did not raise a Section 75 claim with Barclays PF until November 2022, more than seven years after the purchase. Barclays PF declined the claim citing the Limitation Act 1980, which provides a six-year limitation period for misrepresentation claims. The ombudsman upheld Barclays PF's position, finding it was fair and reasonable for the firm to rely on the statutory time bar defence, as the cause of action accrued at the Time of Sale and the claim was made well outside the limitation period.

The Ombudsman's reasoning

The ombudsman applied the Limitation Act 1980, which provides a six-year limitation period for claims of misrepresentation. The cause of action accrued at the Time of Sale (27 January 2015) when Mrs O entered into the purchase based on the alleged misrepresentations and suffered loss through the credit agreement. Since Mrs O did not notify Barclays PF of her Section 75 claim until November 2022 - more than six years later - the claim was time-barred. The ombudsman found it was not unfair or unreasonable for Barclays PF to rely on this statutory defence.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website