Upheld: irresponsible lending / goods of unsatisfactory quality / failed repair complaint against STARTLINE MOTOR FINANCE LIMITED

Decision detail

Summary

Mr L purchased a used car under a hire purchase agreement from Startline Motor Finance in February 2025 for £13,147 with a £99 deposit. The five-year-old car with 22,185 miles developed an ABS sensor fault within three months and less than 2,336 miles of driving. After the dealer replaced the ABS sensor in July 2025, the warning lights returned after approximately 20 miles. Mr L requested to reject the car, but Startline refused, citing unauthorized repairs by a third-party garage. The ombudsman upheld the complaint, finding the car was of unsatisfactory quality and the first repair had failed, entitling Mr L to reject it. Startline was instructed to end the finance agreement, take back the car, refund the deposit and diagnostic costs with interest, and remove adverse credit file information.

The Ombudsman's reasoning

The ombudsman applied the Consumer Rights Act 2015, which requires goods to be of satisfactory quality. Given the car's age (five years), relatively low mileage (22,185 miles), and price (£13,147), a reasonable person would expect it to be in good condition and free from defects other than minor ones. The ABS sensor fault developed within three months and less than 2,336 miles, indicating the fault was present or developing at supply or the car lacked durability. Although repair is a remedy under the CRA, the evidence shows the first repair failed as the fault returned. Under the CRA, after one failed repair, the consumer has the final right to reject. The ombudsman rejected Startline's argument that taking the car to a third party for diagnosis affected rejection rights, and treated the unauthorized second repair as not having taken place under the unique circumstances.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website