Compensation for Damaged Credit Record

legal updates

The Finance Company had unlawfully damaged his credit record because the agreement ought to have been cancelled when the laptop was returned.

Read our disclaimer keyboard_arrow_down

This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.

The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.

The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.

Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.

If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.

All characters are fictitious and should not be taken as referring to any person living or dead.

Use of this website shall be considered acceptance of the terms of the disclaimer presented above.

Mr Durkin of Aberdeen bought a laptop priced at £1499, which he was intending to pay on a finance agreement. 

He returned the laptop once he discovered it had no built in modem.  The Finance Company insisted that he nevertheless make the repayments under the credit agreement and when he did not, his credit record was ‘blacklisted’.

He went to Aberdeen Sheriff’s Court and agreed that the Finance Company had unlawfully damaged his credit record because the agreement ought to have been cancelled when the laptop was returned.  How much did they say he was owed in compensation?  £116,000!

He lost following appeal but he, in turn, appealed again and finally the Supreme Court has, just this month, agreed that the Finance Company breached their duty of care to him and has said he is entitled to compensation, but ‘only’ £8000.

And now ask yourself – when did Mr Durkin actually buy this laptop?  The answer, my friends,  is…………… a ‘mere’ SIXTEEN years ago!  

The judgment has serious implications on finance and credit providers – if they wrongly and unjustifiably affect a consumer’s credit record they can be sued for breaching a duty of care towards that consumer.  

HaswentWebsites for dealers small and large

Composer is a next-gen automotive platform that has been designed from the ground up to give you an intuitive way to promote your stock. You have extensive stock management options, and you'll gain a brilliantly responsive new website to advertise your stock, starting at just £39.99/month.

Jason WilliamsLegal AdvisorRead More by this author

Related Legal Updates

FCA Commission Review: Separating fact from fiction in the wake of scaremongering

Attend a complimentary seminar hosted by the FCA for first-hand information – Scheduled for Wednesday, 24 January 2024.

The FOS reports over 10,000 motor finance complaints: Are we really surprised?

The good news currently is the FCA is focussing its attention on the lender and not our members.

Customer reneges on agreed not distance sale

Our member explained they do not offer a delivery service and do not engage in distance selling.

Consumer “Handcuffed” by Deduction for Use Settlement

Don’t sign any contract unless you are fully aware of its terms!

Another victory, but the problem has still not gone away!

The FOS confirmed in the article they had not yet published any final decisions on commission-related complaints.

Double or nothing – Consumer’s claim dismissed!

The Claimant countered with a request for more than double the amount that our member had offered.

Non-refundable deposits – Where do you stand?

Relevant paperwork should be provided before payment is taken.

Get in touch

Complete the form to get in touch or via our details below:

01480 455500

Vinpenta House
High Causeway

By submitting this quote you agree to our Terms & Conditions and Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.