Veste

Upheld: Other regulated complaint complaint against Shawbrook Bank Limited

Financial Ombudsman decision DRN-6440004 of 2026-06-19T00:00:00+00:00. Other regulated complaint complaint against Shawbrook Bank Limited. Outcome: Upheld.

Decision detail

ReferenceDRN-6440004
Decision date2026-06-19T00:00:00+00:00
FirmShawbrook Bank Limited
ProductPersonal loan
Claim typeOther regulated complaint
OutcomeUpheld
RemedyThe Lender must: (1) refund all repayments under the Credit Agreement including settlement sums and cancel any outstanding balance; (2) refund the difference between Fractional Club annual management charges and what European Collection charges would have been (where Fractional was higher); (3) deduct any promotional giveaways used and payments received under the Wish to Rent programme; (4) add simple interest at 8% per annum to each net repayment from the date made until settlement; (5) remove any adverse credit file information recorded within six years of the decision; (6) if Fractional Club membership is still in place, indemnify Mr and Mrs S against all ongoing liabilities provided they agree to hold the benefit of their interest in the Allocated Property for the Lender or assign it to the Lender.

Summary

Mr and Mrs S, both aged 73, purchased Fractional Club timeshare membership in March 2014 by trading in their existing European Collection Points (valued at £50,000), making a £8,000 direct payment, and taking a £30,000 loan from Shawbrook Bank Limited. The Supplier presented Fractional Club membership as advantageous because it would end after 15 years rather than continuing until 2054 as their European Collection membership would. However, the Supplier failed to inform Mr and Mrs S that they had the right to surrender their European Collection membership at no cost once they reached age 75, which was only two years away. The Ombudsman found this omission was material to their decision and created an unfair credit relationship, as Mr and Mrs S would not have purchased the Fractional Club membership had they known they could exit their existing membership within two years. The Ombudsman upheld the complaint and ordered the Lender to refund all repayments under the Credit Agreement, refund excess management charges, add 8% simple interest, remove adverse credit file information, and indemnify Mr and Mrs S against ongoing liabilities related to the Fractional Club membership.

The Ombudsman's reasoning

The Ombudsman found that the Supplier failed to provide Mr and Mrs S with sufficient information at the point of sale about their right to surrender European Collection membership once they reached age 75. This was material to their decision because: (1) they were already 73 years old at the time of sale, meaning they were only two years away from being able to exit their European Collection membership at no cost; (2) the shorter membership term was explicitly stated as a key reason for their purchase in the Supplier's own notes; (3) Mr and Mrs S consistently stated throughout the complaint that the shorter term was a primary motivation; and (4) had they known they could exit at age 75, they would not have paid over £30,000 for Fractional Club membership. The Ombudsman rejected the Lender's arguments that Mr and Mrs S should have been aware of the policy from September 2012 information (which was in a selling context, not surrendering context), from the members website, or from Annual General Meetings (which occurred after the sale). The Ombudsman also rejected the suggestion that Mr and Mrs S must have asked about relinquishment, finding no compelling evidence of this. The Ombudsman concluded this created an unfair relationship under Section 140A of the CCA.

How this compares

GroupDecisionsUphold rate
Shawbrook Bank Limited, all decisions2,53317%
Other regulated complaint, all decisions18,71718%
Personal loan, all decisions23,64329%

Source

Read the original decision on the Financial Ombudsman Service website