Upheld: unsatisfactory quality of goods; right to reject following unsuccessful repair complaint against CA AUTO FINANCE UK LTD
Financial Ombudsman decision DRN-6104152 of 2026-04-21T00:00:00+00:00. unsatisfactory quality of goods; right to reject following unsuccessful repair complaint against CA AUTO FINANCE UK LTD. Outcome: Upheld.
Decision detail
| Reference | DRN-6104152 |
|---|---|
| Decision date | 2026-04-21T00:00:00+00:00 |
| Firm | CA AUTO FINANCE UK LTD |
| Product | hire purchase agreement (motor finance) |
| Claim type | unsatisfactory quality of goods; right to reject following unsuccessful repair |
| Outcome | Upheld |
| Remedy | CAF must: (1) collect the car with Mrs L not liable for monthly rentals after collection; (2) end the agreement and remove it from Mrs L's credit file; (3) refund all rental payments made by Mrs L; (4) pay £150 compensation for distress and inconvenience; (5) remove any adverse credit information recorded with credit reference agencies. All refunds to accrue 8% yearly simple interest from date of payment to settlement. CAF not required to absorb the negative equity but should provide forbearance options if an outstanding balance remains. |
Summary
Mrs L purchased a used 8-year-old car with 60,800 miles through a hire purchase agreement with CAF in June 2025. Within two weeks, the vehicle developed engine faults (power loss and jolting) requiring repair of the throttle body. After the first repair failed to resolve the issue, Mrs L requested rejection on 11 July 2025. CAF refused rejection and offered only a two-month payment refund, but the vehicle was subsequently repaired and ready for collection in August 2025. The ombudsman upheld Mrs L's complaint, finding the vehicle was supplied in unsatisfactory condition and that her statutory right to reject under the Consumer Rights Act 2015 was triggered by the unsuccessful initial repair. CAF was instructed to end the agreement, refund all payments, pay £150 compensation, and remove adverse credit information.
The Ombudsman's reasoning
Under the Consumer Rights Act 2015, goods must be of satisfactory quality. A reasonable person would expect a used car with 60,800 miles to be free from major defects and provide trouble-free motoring. The vehicle was supplied with an unsatisfactory engine fault within 30 days. Although CAF had the initial right to repair, the repair was unsuccessful. Under Section 19 of the CRA, when an initial repair fails, the consumer has the right to reject the goods. Since Mrs L requested rejection after the unsuccessful repair and before the second repair was completed, she was entitled to reject the vehicle. The fact that the car was subsequently repaired does not override her statutory right to reject.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| CA AUTO FINANCE UK LTD, all decisions | 226 | 55% |
Source
Read the original decision on the Financial Ombudsman Service website