Not upheld: Irresponsible lending complaint against Evergreen Finance Limited

Decision detail

Summary

Mr E complained about a hire purchase agreement for a caravan entered into with Evergreen Finance Limited in 2008. He claimed the agreement was unaffordable, he was on benefits, he was pressured into it, and his medical condition was exploited. He also complained that the caravan park sold the caravan for significantly more than he sold it to them for. The ombudsman found the agreement was affordable based on Mr E's bank statements and consistent payment history, that his medical condition would not have been apparent to a sales person, and that Evergreen was not responsible for the caravan sale price. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Mr E's bank statements and payment history demonstrated the agreement was affordable at the point of sale. Medical evidence indicated Mr E had the capacity to understand the agreement and his condition would not have been apparent to a sales person. The ombudsman noted that if Mr E had been pressured, he would have complained sooner rather than continuing to make regular payments. Evergreen was not responsible for the price Mr E negotiated with the caravan park, as it was not party to those negotiations.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website