Upheld: PCP / HP mis-selling complaint against Black Horse Limited

Decision detail

Summary

Mr E held a car finance agreement with Black Horse and agreed to voluntarily terminate it in May 2025 when he received a company car. Black Horse's portal system incorrectly generated a settlement figure of £1,056.99, which Mr E paid, when the correct voluntary termination liability was £1,999.36. Black Horse subsequently claimed Mr E owed £942.37 as the remaining balance. The ombudsman upheld the complaint, finding that while Mr E was contractually liable for £942.37, Black Horse's system error caused the dispute and warranted compensation of £250 (in addition to £50 already offered) for distress and inconvenience caused.

The Ombudsman's reasoning

While Black Horse was contractually entitled to claim £1,999.36 under the voluntary termination clause, the dispute arose solely because Black Horse's portal system generated an incorrect settlement figure of £1,056.99. Although Black Horse was not bound to accept the erroneous amount and Mr E remains liable for the £942.37 shortfall, Black Horse caused the confusion and distress through their system error. The ombudsman found that compensation was warranted for the inconvenience and distress caused by Black Horse's actions, accepting the investigator's recommendation of £250 as fair and reasonable in addition to the £50 already offered.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website