Partially upheld: Service failures generally complaint against MONEYBARN NO.1 LIMITED

Decision detail

Summary

Mr D entered into a conditional sale agreement with MBL in August 2025 but was made redundant shortly thereafter. When he called MBL on 22 August 2025 seeking help, he was incorrectly told to contact the dealership to reject the vehicle. MBL provided correct information about exit options 5 days later on 27 August 2025 and placed a hold on his payments. Mr D complained that the initial incorrect information worsened his situation, leading to arrears and distress. The ombudsman found that the 5-day delay in providing correct information did not materially affect Mr D's options or prevent the arrears, as he could not afford the exit options even when correctly presented. The ombudsman upheld the complaint in part and confirmed MBL's offer of £50.00 compensation was fair, whilst urging MBL to show forbearance given Mr D's vulnerable financial circumstances.

The Ombudsman's reasoning

The ombudsman found that whilst MBL provided incorrect information on 22 August 2025, this was rectified within 5 days on 27 August 2025 when correct information was provided. The ombudsman concluded that if correct information had been given on the first call, it would not have made a significant difference to Mr D's options or costs, as Mr D was unable to afford the exit options even when correctly presented 5 days later. The arrears that accrued would have naturally built up regardless of the initial error. The ombudsman acknowledged Mr D's distress and mental health impact but concluded this was primarily caused by the redundancy and inability to afford the agreement, not the 5-day delay in receiving correct information. The £50.00 compensation was deemed fair to reflect the distress and inconvenience caused by the incorrect information.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website