Upheld: Goods and services under S75 complaint against Marsh FM LLP
Financial Ombudsman decision DRN-6050015 of 2026-01-06T00:00:00+00:00. Goods and services under S75 complaint against Marsh FM LLP. Outcome: Upheld.
Decision detail
| Reference | DRN-6050015 |
|---|---|
| Decision date | 2026-01-06T00:00:00+00:00 |
| Firm | Marsh FM LLP |
| Product | Motor finance (PCP / HP) |
| Claim type | Goods and services under S75 |
| Outcome | Upheld |
| Remedy | Marsh FM LLP must: (1) End the credit agreement with nothing further to pay; (2) Remove adverse credit file information; (3) Collect the car at no cost to Mr R at convenient time; (4) Refund deposit of £250; (5) Refund all monthly payments from November 2024 onwards (£1,239.56 estimated); (6) Reimburse all repair costs totalling £1,814.87 (inspection £195.00, warranty uncovered repairs £581.79, spark plugs/coils £114.19, timing belt £499.00, thermostat housing £120.00, replacement coils £303.89); (7) Pay 8% simple interest on all refunded amounts from date of payment to settlement; (8) Pay £400 compensation for distress, anxiety, and worry. |
Summary
Mr R purchased a used car through a hire purchase agreement with Marsh FM LLP in December 2023 for £3,750. The car, nearly 6 years old with 78,000+ miles, developed multiple engine problems beginning in April 2024, including coil issues, oil in water, timing belt failure, and persistent misfires. Despite numerous repair attempts costing over £1,800, the car became undriveable by November 2024. An independent engineer's inspection in November 2025 concluded the car had a pre-existing internal engine defect present at sale, supported by an auction listing noting 'engine and exhaust smoking' only 3 miles before delivery. The ombudsman upheld the complaint, finding the car was not of satisfactory quality under the Consumer Rights Act 2015, and directed Marsh to end the credit agreement, refund all payments and costs, and pay £400 compensation.
The Ombudsman's reasoning
The Consumer Rights Act 2015 requires suppliers to provide goods of satisfactory quality. The independent engineer's report provided compelling evidence that the car had a pre-existing internal engine defect (worn piston rings, damaged piston, or cylinder wear) present at the point of sale, as indicated by the auction listing noting 'engine and exhaust smoking' only 3 miles before delivery. The persistent cylinder 3 misfire, fouled plugs, excessive soot, and oily residue throughout Mr R's ownership all point to this inherited defect. Given the car is now neither roadworthy nor movable, rejection is the appropriate remedy. Mr R has had no use of the car since November 2024 and has incurred substantial repair costs attempting to rectify a fault that was not his responsibility.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Marsh FM LLP, all decisions | 8 | 62% |
| Goods and services under S75, all decisions | 19,153 | 37% |
| Motor finance (PCP / HP), all decisions | 19,455 | 38% |
Source
Read the original decision on the Financial Ombudsman Service website