Not upheld: satisfactory quality of goods - hire purchase complaint against Black Horse Limited

Decision detail

Summary

Mr T purchased a used car (over four years old, 79,650 miles) via hire purchase with BHL in July 2024. The car developed DPF and turbo issues beginning in March 2025, requiring repairs in May 2025. Mr T complained to BHL in June 2025 requesting rejection of the car, but BHL declined. Mr T provided a third-party garage report from November 2025 identifying turbo wear, which he argued proved the car was faulty at supply. The ombudsman rejected this complaint, finding the report inconclusive as to when faults originated, noting the car had passed an MOT with no advisories in January 2025, and concluding the repairs likely resulted from normal wear and tear on a used vehicle rather than pre-existing defects.

The Ombudsman's reasoning

Under the Consumer Rights Act 2015, goods supplied under a hire purchase agreement must be of satisfactory quality at the point of supply. For used cars, satisfactory quality is assessed considering age, mileage, and price. While the CRA presumes non-conformity within six months, Mr T's complaint came eleven months after supply, placing the burden on him to prove faults were present or developing at supply. The third-party garage report from November 2025 was inconclusive as to when faults occurred, was produced 17 months after supply and five months after repairs, and lacked specificity about the timing of the turbo's deterioration. The car's passage of an MOT in January 2025 with no advisories suggested no developing issues at that time. The ombudsman concluded the required repairs likely resulted from normal wear and tear on a used vehicle rather than pre-existing defects.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website