Not upheld: Goods and services under S75 complaint against Motability Operations Limited

Decision detail

Summary

Ms B acquired a new car through a Motability hire agreement in November 2022. In February 2025, approximately 2 years later, the car developed a gearbox fault requiring a replacement gear change module. The repair took 4-5 months due to the part being on back order, during which Ms B continued to use the car or was provided with a courtesy car. Ms B complained to Motability seeking a refund of her monthly payments for the 5 months the car was faulty, arguing the repair took an unreasonable time and the £300 compensation was insufficient. The ombudsman found the car was of unsatisfactory quality when supplied but determined Motability had remedied the fault reasonably, kept Ms B mobile, and the £300 compensation was fair, so the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found the vehicle was not of satisfactory quality when supplied because a reasonable person would expect a new car to be free from defects for a considerable period. However, Motability remedied the fault through repair within a reasonable timeframe given the part was on back order. Since Ms B continued to use the car and was kept mobile during repairs, she received the benefit of the vehicle and should pay for that use. The £300 compensation fairly reflected the distress and inconvenience caused.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website