Upheld: PCP / HP mis-selling complaint against Marsh Finance & Commercial Limited

Decision detail

Summary

Ms O complained about a £1,516.17 damage charge applied by Marsh Finance & Commercial Limited after she voluntarily terminated a hire purchase agreement for a used car in October 2024. The charge was for a dented left-hand rear quarter panel that Marsh claimed needed replacement. Ms O argued she was unaware of the damage or charge at inspection and that the charge was disproportionate to the car's value. The ombudsman upheld the complaint, finding that Marsh's photographic evidence was inadequate and unclear, and that for a charge representing nearly half the car's original price, more persuasive evidence was required. The ombudsman also noted the car was over 12 years old with high mileage, making it unclear when the damage occurred or whether Ms O was responsible.

The Ombudsman's reasoning

The ombudsman found that Marsh failed to provide sufficiently clear evidence to demonstrate the extent of the damage or that the charge was applied fairly. The photos were inadequate - one taken from a distance in a showroom environment sometime after collection, and another taken in low visibility showing no damage. For a charge representing nearly half the car's original cash price, the ombudsman expected persuasive evidence showing the damage extent, Ms O's responsibility, and that repair was impossible. The ombudsman also noted that given the car's age (over 12 years old) and high mileage (95,000+ miles) at collection, the BVRLA guidelines should be adjusted accordingly, and it was unclear when the damage occurred or whether Ms O was responsible for it.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website