Compensation for Damaged Credit Record


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

Author: Jason Williams
Reading time: 2 minutes

This article is 8 years old.

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.  

Jason Williams

Legal Advisor

Read more by this author

Getting in touch

You can contact us via the form or you can call us on 01480 455500.