Not upheld: PCP / HP mis-selling complaint against Evergreen Finance Limited

Decision detail

Summary

Mrs H and Mr N complained that Evergreen Finance Limited failed to provide them with necessary information when they upgraded their financed caravan, resulting in them paying too much for the second caravan. They claimed they were not informed that their first caravan would be part exchanged at a significant loss of £12,000, and that they were asked to sign blank finance application forms. The ombudsman found that the hire purchase agreements clearly disclosed the part exchange allowance and cash price, and that Mrs H and Mr N had the opportunity to review and question the figures before signing in March 2016. The ombudsman concluded that while the sales service was not ideal, the complainants were provided with the information needed to make an informed decision and the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that the hire purchase agreements contained all information needed for an informed decision, with the part exchange amount and cash price clearly set out in the documents signed by Mrs H and Mr N. Although the sales service may not have been ideal and questions were not answered, Mrs H and Mr N had the opportunity to review the documents before signing in March and could have challenged the figures at that time. The ombudsman noted that given the substantial amount being spent, it was reasonable to expect them to check the agreement details. The ombudsman also found no evidence supporting the claim that the seller would cover interest costs, and that Mrs H and Mr N bore responsibility for ensuring the accuracy of information they provided on the finance application.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website