Upheld: Goods and services under S75 complaint against Marsh FM LLP
Financial Ombudsman decision DRN-5737940 of 2025-09-29T00:00:00+00:00. Goods and services under S75 complaint against Marsh FM LLP. Outcome: Upheld.
Decision detail
| Reference | DRN-5737940 |
|---|---|
| Decision date | 2025-09-29T00:00:00+00:00 |
| Firm | Marsh FM LLP |
| Product | Motor finance (PCP / HP) |
| Claim type | Goods and services under S75 |
| Outcome | Upheld |
| Remedy | Refund £40 initial breakdown recovery cost; Refund £60 transport from garage to address; Refund £156 diagnostic report costs; Refund deposit if not already done; Apply 8% simple interest on all refunds from date of payment to settlement date; Pay £100 compensation for distress and inconvenience |
Summary
Miss D purchased a used car via hire purchase agreement with Marsh on 7 October 2024. The car broke down on 24 October 2024, requiring towing to a garage (£40) and a diagnostic report (£156) which identified multiple faults. The car required further removal from the garage (£60), and the finance agreement was unwound on 18 November 2024, leaving Miss D without transport for four weeks. Marsh accepted the car was not of satisfactory quality but initially refused to refund the costs or pay compensation. The ombudsman upheld the complaint, finding the costs were reasonably incurred as a direct result of the defective vehicle and that £100 compensation was fair for the distress and inconvenience caused to Miss D as a single parent.
The Ombudsman's reasoning
The ombudsman found it was not unreasonable for Miss D to have the car towed to a local garage when it broke down in the evening, and that the subsequent removal costs were a direct result of the car's lack of satisfactory quality. The diagnostic report costs were accepted by Marsh as the basis for unwinding the agreement. While Marsh responded quickly and unwound the agreement within 26 days, this does not negate the stress and inconvenience caused to Miss D as a single parent unable to access transport for work and school runs for four weeks. Therefore, compensation of £100 for distress and inconvenience was warranted.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Marsh FM LLP, all decisions | 8 | 62% |
| Goods and services under S75, all decisions | 19,153 | 37% |
| Motor finance (PCP / HP), all decisions | 19,455 | 38% |
Source
Read the original decision on the Financial Ombudsman Service website