Not upheld: unsatisfactory quality of goods under hire purchase agreement complaint against N.I.I.B. Group Limited trading as Northridge Finance
Financial Ombudsman decision DRN-5949084 of 2026-04-08T00:00:00+00:00. unsatisfactory quality of goods under hire purchase agreement complaint against N.I.I.B. Group Limited trading as Northridge Finance. Outcome: Not upheld.
Decision detail
| Reference | DRN-5949084 |
|---|---|
| Decision date | 2026-04-08T00:00:00+00:00 |
| Firm | N.I.I.B. Group Limited trading as Northridge Finance |
| Product | Motor finance (PCP / HP) |
| Claim type | unsatisfactory quality of goods under hire purchase agreement |
| Outcome | Not upheld |
| Remedy | No additional remedy ordered. Northridge's proposed options were deemed fair and reasonable: (1) repair at no cost with courtesy vehicle provided, with mileage deduction only for repair-related travel if subsequently rejected; or (2) immediate rejection with standard mileage deductions from point of supply to rejection. |
Summary
Mr D purchased a used vehicle through a hire purchase agreement with Northridge Finance for £23,988. The four-year-old vehicle with over 81,000 miles developed faults with the alternator, fan belt, and drive shaft, making it unsafe to drive. Northridge upheld Mr D's complaint and offered two options: repair at no cost using non-manufacturer parts with a courtesy vehicle, or rejection with standard mileage deductions. Mr D objected to the use of non-new parts. The ombudsman found both options fair and reasonable given the vehicle's age and mileage, and did not uphold the complaint.
The Ombudsman's reasoning
The ombudsman applied the Consumer Rights Act 2015 standard of 'satisfactory quality', which requires goods to meet the standard a reasonable person would consider satisfactory, taking into account age, mileage, and other relevant factors. For a vehicle with over 81,000 miles, it would be disproportionate to require brand new manufacturer parts for repairs. The ombudsman found Northridge's two options (repair with non-new parts or rejection with fair mileage deductions) to be appropriate remedies that aligned with FOS expectations for such complaints.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| N.I.I.B. Group Limited trading as Northridge Finance, all decisions | 11 | 46% |
| Motor finance (PCP / HP), all decisions | 18,521 | 38% |
Source
Read the original decision on the Financial Ombudsman Service website