Not upheld: Goods and services under S75 complaint against Mitsubishi HC Capital UK PLC trading as Novuna Personal Finance

Decision detail

Summary

Mr A purchased a Fractional Club timeshare membership for £13,899 on 25 June 2012, financed by a credit agreement with the Lender. He traded in the membership in June 2013 and subsequently made a complaint to the Lender on 25 June 2025 (13 years later) claiming misrepresentation and breach of contract under Section 75 of the Consumer Credit Act, and alleging an unfair credit relationship under Section 140A. The Lender rejected all claims. The Ombudsman found the Section 75 claims were made outside the six-year limitation period under the Limitation Act 1980, making it fair for the Lender to decline them. The complaint about unfair credit relationship was out of jurisdiction due to late submission. The Ombudsman also rejected Mr A's new allegation that the Fractional Club was a regulated investment scheme. The complaint was not upheld.

The Ombudsman's reasoning

The Ombudsman found that the Lender was not unfair in relying on the Limitation Act 1980 defence. The cause of action for misrepresentation accrued on 25 June 2012 (the Time of Sale), giving Mr A six years to make a claim. As the claim was made on 25 June 2025, it was outside the limitation period. Mr A's reliance on Section 32 of the Limitation Act (which postpones the period in cases of fraud, concealment or mistake) was rejected as he provided no persuasive evidence of concealment. Similarly, for the breach of contract claim, the original Purchase Agreement was superseded on 25 June 2013, so any breach must have occurred before that date, placing the claim well outside the six-year limitation period. The Ombudsman also rejected Mr A's new allegation that the Fractional Club was a regulated investment scheme, finding it was a timeshare contract exempt from investment scheme classification under the Timeshare Regulations.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website