Not upheld: Credit file / adverse marker disputes complaint against Alpha Motorcycles Limited

Decision detail

Summary

Mr T complained that Alpha Motorcycles Limited unfairly arranged a conditional sale agreement for a motorbike by failing to adequately disclose the requirement for comprehensive insurance and failing to highlight the consequences of a total loss clause. After a motorcycle accident in September 2024 revealed Mr T only had third party insurance, and subsequent theft of the motorbike in January 2025, Mr T sought redress. The ombudsman found that Alpha adequately informed Mr T of the comprehensive insurance requirement, as evidenced by Mr T's belief he had obtained such cover. The ombudsman rejected arguments that Alpha should have questioned the insurance certificate wording or done more to verify coverage. Even if Alpha had failed in its disclosure obligations, the ombudsman found no loss was caused by Alpha because Mr T could have mitigated his loss after the accident by obtaining proper insurance. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Alpha adequately informed Mr T of the comprehensive insurance requirement, as evidenced by Mr T's belief that he had obtained such cover at the time of the accident. The ombudsman rejected arguments that the insurance certificate wording should have prompted further questioning, as the prescribed wording does not indicate only minimum cover is held. Even if Alpha had failed to disclose information, no loss was caused by Alpha because Mr T believed he had comprehensive insurance and could have mitigated his loss after the accident by obtaining proper cover. The ombudsman found no evidence that Alpha's potential commission incentivized unfair treatment, as commission arrangements are normal in vehicle sales. The ombudsman also found that Mr T's age and inexperience alone do not establish vulnerability requiring different treatment.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website