Upheld: Goods and services under S75 complaint against Marsh Finance Limited

Decision detail

Summary

Mr S purchased a 9-year-old car with 82,900 miles on hire purchase from Marsh Finance Limited in September 2024 for £6,380. Within weeks and less than 700 miles of supply, he reported engine problems including misfiring, rough idle, and warning lights. The dealer carried out repairs, but approximately 6 months later the car developed starting problems. Report A identified likely head gasket failure and cylinder damage, while MF's Report B attributed issues to fuel pump wear and tear. The ombudsman upheld the complaint, finding the car was supplied with unsatisfactory quality due to a pre-existing engine fault, and ordered MF to accept rejection of the car, end the finance agreement, refund rentals and expenses, and pay compensation.

The Ombudsman's reasoning

The ombudsman applied the Consumer Rights Act 2015, which requires goods to be of satisfactory quality. While the car was older and higher mileage, a reasonable person would not expect a car costing several thousand pounds to have pre-existing major component faults. The early symptoms (misfiring, rough idle, warning lights) at low mileage indicated a pre-existing fault. On balance of probabilities, the later head gasket failure was connected to these early problems, indicating the car was sold with a serious underlying engine fault that worsened over time. Report A's more detailed investigation and findings were preferred over Report B's conclusions, particularly given the lack of detailed diagnostic investigation by the dealer at the time of initial complaints and the consistency between early symptoms and later identified cylinder damage.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website