Upheld: supply of faulty goods / breach of Consumer Rights Act 2015 complaint against BMW FINANCIAL SERVICES (GB) LIMITED
Financial Ombudsman decision DRN-6033244 of 2026-04-24T00:00:00+00:00. supply of faulty goods / breach of Consumer Rights Act 2015 complaint against BMW FINANCIAL SERVICES (GB) LIMITED. Outcome: Upheld.
Decision detail
| Reference | DRN-6033244 |
|---|---|
| Decision date | 2026-04-24T00:00:00+00:00 |
| Firm | BMW FINANCIAL SERVICES (GB) LIMITED |
| Product | Motor finance (PCP / HP) |
| Claim type | supply of faulty goods / breach of Consumer Rights Act 2015 |
| Outcome | Upheld |
| Remedy | End finance agreement with no further payments; collect car at no cost; refund full deposit (£3,000); refund all monthly payments from 1 July 2025 onwards; refund 10% of monthly payments pro rata for 4 March 2025 to 16 June 2025; pay 8% simple yearly interest on all refunded amounts from date of payment to settlement; pay £500 compensation for distress and inconvenience if not already paid; remove adverse credit file information. |
Summary
Miss M purchased a used car via hire purchase with BMWFS in January 2025. The car developed a persistent thumping noise in March 2025, and the dealership attempted multiple repairs over three months without success. Miss M requested rejection in July 2025, and an independent inspection in August 2025 confirmed the fault and failed repairs, supporting her right to reject. However, BMWFS initially agreed then reversed position after the dealership disagreed. The ombudsman upheld the complaint, finding BMWFS's refusal to accept rejection was contrary to the Consumer Rights Act 2015, and ordered full refunds of deposits and payments from July 2025 onwards, plus compensation and interest.
The Ombudsman's reasoning
Under the Consumer Rights Act 2015, goods must be of satisfactory quality when supplied. Where a fault is identified within six months, it is assumed the fault was present when supplied unless the supplier proves otherwise. The independent inspection confirmed a fault existed, repairs had failed, and the customer was entitled to reject. The supplier had multiple opportunities to repair (more than the single attempt required by law) and failed. BMWFS's refusal to accept rejection was illogical and contrary to the Consumer Rights Act. The only fair outcome is full rejection with refunds of all payments from July 2025 onwards, plus partial refunds for the earlier period when the car was faulty.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| BMW FINANCIAL SERVICES (GB) LIMITED, all decisions | 1,452 | 47% |
| Motor finance (PCP / HP), all decisions | 18,521 | 38% |
Source
Read the original decision on the Financial Ombudsman Service website