Compensation for Damaged Credit Record

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

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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.  

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