Upheld: Goods and services under S75 complaint against LEASYS UK LTD
Financial Ombudsman decision DRN-6112321 of 2026-01-30T00:00:00+00:00. Goods and services under S75 complaint against LEASYS UK LTD. Outcome: Upheld.
Decision detail
| Reference | DRN-6112321 |
|---|---|
| Decision date | 2026-01-30T00:00:00+00:00 |
| Firm | LEASYS UK LTD |
| Product | Motor finance (PCP / HP) |
| Claim type | Goods and services under S75 |
| Outcome | Upheld |
| Remedy | Leasys UK Ltd must: (1) End the agreement with nothing further for Mr R to pay; (2) Collect the car at no cost to Mr R; (3) Refund Mr R's initial rental payment on a pro-rata basis from November 2024 with simple interest at 8% per annum from date of payment until settlement; (4) Refund 20% of all monthly payments made under the agreement with simple interest at 8% per annum from date of payment until settlement; (5) Pay £350 compensation for distress and inconvenience; (6) Remove any adverse information about this account from Mr R's credit file. |
Summary
Mr R leased a new electric car from Leasys UK Ltd in July 2024 but discovered a charging fault within days that prevented the car from entering hibernation mode if left plugged in, causing the battery to go flat and rendering it unusable. The retailer diagnosed the fault but stated no fix was available pending manufacturer guidance. Mr R complained in November 2024 requesting rejection of the car, but Leasys UK Ltd refused and offered only a partial refund. The ombudsman upheld the complaint, finding the car was not of satisfactory quality and Mr R was entitled to reject it. Leasys UK Ltd was ordered to end the agreement, collect the car, refund the initial rental payment pro-rata with interest, refund 20% of all monthly payments with interest to reflect spoiled enjoyment, pay £350 compensation, and remove adverse credit information.
The Ombudsman's reasoning
The ombudsman found that under the Consumer Rights Act 2015, goods supplied must be of satisfactory quality. A new car should be fault-free. The charging fault discovered within days of acquisition meant the car was not of satisfactory quality and spoiled Mr R's enjoyment and use of the vehicle. As no repair was available within a reasonable timeframe, Mr R had the right to reject the car. Although Mr R could still use the car despite the fault, his enjoyment was significantly impaired. A 20% refund of all monthly payments was considered fair to reflect the spoiled enjoyment, in addition to pro-rata refund of the initial rental payment with interest and £350 compensation. The ombudsman declined to increase compensation despite Leasys UK Ltd's poor customer service, as the monthly payment reduction appropriately compensated for the ongoing inconvenience.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| LEASYS UK LTD, all decisions | 30 | 45% |
| Goods and services under S75, all decisions | 19,153 | 37% |
| Motor finance (PCP / HP), all decisions | 19,455 | 38% |
Source
Read the original decision on the Financial Ombudsman Service website