Upheld: irresponsible lending / goods not of satisfactory quality complaint against Volkswagen Financial Services (UK) Limited trading as Audi Financial Services
Financial Ombudsman decision DRN-6104644 of 2026-05-14T00:00:00+00:00. irresponsible lending / goods not of satisfactory quality complaint against Volkswagen Financial Services (UK) Limited trading as Audi Financial Services. Outcome: Upheld.
Decision detail
| Reference | DRN-6104644 |
|---|---|
| Decision date | 2026-05-14T00:00:00+00:00 |
| Firm | Volkswagen Financial Services (UK) Limited trading as Audi Financial Services |
| Product | hire purchase agreement |
| Claim type | irresponsible lending / goods not of satisfactory quality |
| Outcome | Upheld |
| Remedy | Take back the car without charging for collection; refund deposit of £5,051; refund £1,395 for low mileage; refund all of September 2025's monthly repayment; pay 8% simple interest on all refunded amounts from date of payment until settlement; pay £500 compensation for distress; remove adverse information from credit file if applicable. |
Summary
Mr A purchased a new car through a hire purchase agreement with VWFS in April 2023 for £84,733. The car developed multiple faults including brake issues, warning lights, faulty start system, and other defects, requiring numerous visits to the dealership for repairs. In May 2025, Mr A requested rejection of the car as unsatisfactory quality. VWFS accepted the complaint and offered to take back the car, refund the deposit, provide a mileage allowance refund, refund September 2025's repayment, and pay £500 compensation. Mr A rejected this offer, seeking refunds of all monthly repayments. The ombudsman upheld VWFS's offer as fair and reasonable, finding that Mr A's 31,000 miles of usage over three years aligned with his agreed 10,000 miles per year allowance and he should therefore pay for this use through his monthly repayments.
The Ombudsman's reasoning
The Consumer Rights Act 2015 permits deductions for use from refunds. Mr A's mileage of 31,000 over three years aligns with the agreed 10,000 miles per year allowance, so he should pay for this usage through his monthly repayments. Although Mr A felt forced to continue using the car due to VWFS's initial refusal to accept rejection, he still used it in line with his financial agreement. The £500 compensation is reasonable for the distress caused by receiving a defective luxury car. VWFS's offer is fair as it allows Mr A to reject the car while fairly accounting for his use of it.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Volkswagen Financial Services (UK) Limited trading as Audi Financial Services, all decisions | 8 | 19% |
Source
Read the original decision on the Financial Ombudsman Service website