Clare couple vindicated by financial ombudsman

The Financial Services Ombudsman has ordered a finance company to repay €25,081 to a South-East Clare couple, whose car was seized last August.

The couple’s car loan had fallen into arrears, although they had paid €25,081 from a total of €31,695.80, leaving an outstanding balance of €6,607.01, according to the Ombudsman’s report on the case.
On the day the car was seized, a representative of the finance company arrived unannounced at the complainant’s house. 
“It is the complainant’s case that the representative offered no alternatives to the complainant except to hand over the car for repossession purposes. The complainant states the representative acted in an aggressive and unnecessary manner and on a number of occasions threatened to call the gardaí. Thereafter, the representative produced a voluntary surrender document, which the complainant signed under duress, arising from the threat of bringing the gardaí into the equation. The document was not explained to the complainant and he was not given the opportunity to review it or seek advice,” William Prasifka stated.
However, at the hearing with the financial ombudsman, the finance company denied that their representative, who called to the couple’s house, threatened to call the gardaí.
The company claimed that he was merely seeking to discuss the arrears of €2,879.60 on the car.
The financial institution involved provided a recording of a conversation involving the complainant’s wife and a company representative on August 19, 2009.
“The complainant’s interpretation of that telephone conversation is that there was a clear and unambiguous agreement given by the company that no steps would be taken against the complainant, so long as a payment of €527 was made by August 28, 2009,” the report said.
In his findings, the ombudsman supported the couple’s take on the telephone conversation.
“On reviewing the tape, I found that there was an agreement reached with the finance company and the complainant that some of the arrears would be paid off, in two instalments, by August 28, 2009. I disagree with the finance company’s position that there was no concluded agreement between the complainant and the company in respect of meeting arrears for the month of August,” the ombudsman explained.
“I have grave reservations about how the car was taken back into the custody of the financial institution. I am not satisfied that the car was handed over voluntarily by the complainant,” he added.
Along with repaying €25,081 to the complainant, the finance company was also ordered to pay €1,500 “towards damages for stress and inconvenience”.
He found that the complaint to his office was substantiated under Section 57 C1 (2) of the Central Bank and Financial Services Authority of Ireland Act 2004.
The finding is legally binding on the parties involved, subject only to an appeal to the High Court within 21 calendar days. The complainant was represented by Gwen Bowen, Solicitors, Sixmilebridge.