Upheld: Irresponsible lending complaint against Marsh Finance & Commercial Limited

Decision detail

Summary

Mr G purchased a used car through a hire purchase agreement with Marsh Finance & Commercial Limited in April 2024 for £15,495. Five months later, the turbocharger failed and required replacement at £1,250, followed by a lambda sensor replacement for £271. After repairs, the engine management light continued to illuminate. An independent engineer's inspection in May 2025 found the turbo had been poorly installed but concluded no other faults indicated the car was unfit for purpose at sale. The ombudsman upheld the complaint, finding that under the Consumer Rights Act 2015, faults identified within six months are presumed present at supply unless the supplier proves otherwise. Marsh was directed to refund the repair costs, pay interest, and provide £200 compensation for distress and inconvenience.

The Ombudsman's reasoning

Under the Consumer Rights Act 2015, goods must be of satisfactory quality, and where a fault is identified within the first six months, it is presumed to have been present at supply unless the supplier proves otherwise. The turbocharger and lambda sensor repairs undertaken in September 2024 (five months after supply in April 2024) fall within this six-month window. In the absence of evidence from Marsh to the contrary, these faults must be assumed to have been present or developing when the car was supplied. The independent engineer's report confirmed no additional faults were present at the time of inspection that would indicate unsatisfactory quality beyond the turbo and lambda sensor issues. Therefore, Marsh is liable for the cost of those repairs.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website