Upheld: goods not of satisfactory quality; breach of Consumer Rights Act 2015; failure to handle post-supply fault within reasonable timeframe complaint against BMW FINANCIAL SERVICES (GB) LIMITED trading as Alphera Financial Services
Financial Ombudsman decision DRN-6056973 of 2026-04-20T00:00:00+00:00. goods not of satisfactory quality; breach of Consumer Rights Act 2015; failure to handle post-supply fault within reasonable timeframe complaint against BMW FINANCIAL SERVICES (GB) LIMITED trading as Alphera Financial Services. Outcome: Upheld.
Decision detail
| Reference | DRN-6056973 |
|---|---|
| Decision date | 2026-04-20T00:00:00+00:00 |
| Firm | BMW FINANCIAL SERVICES (GB) LIMITED trading as Alphera Financial Services |
| Product | Motor finance (PCP / HP) |
| Claim type | goods not of satisfactory quality; breach of Consumer Rights Act 2015; failure to handle post-supply fault within reasonable timeframe |
| Outcome | Upheld |
| Remedy | Alphera must: end the finance agreement with no further monthly repayments; take the car back at no cost; refund deposit in full with 8% simple interest from date of payment; refund all monthly repayments from 19 February 2025 to date with 8% simple interest from date of each repayment; waive any missed repayments from 19 February 2025; refund £408.78 sensor repair payment with 8% simple interest from date paid; pay £350 compensation for distress and inconvenience; refund any motor insurance admin fees upon proof; remove adverse credit file information relating to the finance agreement. |
Summary
Mr M purchased a used car on finance from Alphera in September 2024. Within a week, the car developed a sensor fault, and in February 2025, it suffered engine failure. Mr M was passed between the dealership, warranty provider, credit broker and Alphera without receiving clear guidance or a coordinated resolution pathway. Despite being aware of the situation from February 2025, Alphera failed to take an active role in overseeing the repair or clarifying liability. By May 2025, nearly three months after the breakdown, the matter remained unresolved. Mr M requested rejection of the car, which was upheld by the ombudsman as reasonable given the unreasonable delay and breach of the Consumer Rights Act 2015 requirement for repairs within a reasonable timeframe. Alphera was ordered to end the finance agreement, return the car, refund all payments with interest, and pay £350 compensation.
The Ombudsman's reasoning
The ombudsman agreed with the investigator that Alphera, as the finance provider, bears ultimate responsibility for ensuring post-supply faults are handled fairly and in line with the Consumer Rights Act 2015. Although the dealership may be the first point of contact, Alphera failed to take an active role in coordinating the resolution after being notified on 23 February 2025. Mr M was left navigating between multiple parties without clear guidance or ownership from the responsible business. By 9 May 2025, nearly three months after the breakdown, no repair had been completed, liability remained unsettled, and Alphera had not stepped in to coordinate or provide clarity. The Consumer Rights Act requires repairs to be carried out within a reasonable timeframe without significant inconvenience. Given these circumstances, Mr M was entitled to reject the car. The sensor failure within the first week should have been Alphera's responsibility, not Mr M's. Any repairs completed after rejection were too late.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| BMW FINANCIAL SERVICES (GB) LIMITED trading as Alphera Financial Services, all decisions | 31 | 37% |
| Motor finance (PCP / HP), all decisions | 18,521 | 38% |
Source
Read the original decision on the Financial Ombudsman Service website