Partially upheld: Goods and services under S75 complaint against Mallard Leasing Limited

Decision detail

Summary

Mr P purchased a used car via hire purchase agreement with Mallard Finance in April 2023 for £7,000. The 10-year-old car with 129,000 miles subsequently developed faults including warning lights and vibration. Mr P also discovered the advertised 'full service history' was incomplete, with the last record from July 2020 and at least two expected services missing. The ombudsman found the reported faults were consistent with normal wear and tear on a vehicle of this age and mileage, so did not indicate unsatisfactory quality at supply. However, the incomplete service history constituted mis-description that would affect the car's future value. Mallard was ordered to pay £500 compensation for this loss of value.

The Ombudsman's reasoning

The ombudsman applied the Consumer Rights Act 2015, which requires goods to be of satisfactory quality when supplied. For a used car of this age and mileage, satisfactory quality is assessed considering the price, description, age, mileage, and history. While faults within six months are presumed present at supply, the ombudsman found the faults reported were not inconsistent with normal wear and tear on a 10-year-old car with 129,000 miles. However, the service history was demonstrably incomplete and inaccurate, constituting mis-description that would affect the car's future value.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website