Not upheld: Goods and services under S75 complaint against Volkswagen Financial Services (UK) Limited trading as Skoda Financial Services (VWFS)

Decision detail

Summary

Mr G purchased a used car via hire purchase agreement in October 2021 for £16,990, discovering later that it had previously been used as a taxi. He complained that the car dealer failed to disclose this material information, which he believed affected the car's value. The car dealer had responded to his inquiry about previous ownership by stating the car was returned due to the customer's health reasons. The ombudsman found no misrepresentation occurred because the dealer's statement was not factually incorrect, taxi use information is held on council databases rather than standard HPI checks, and the dealer was not expected to have access to such information in 2021. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the test for misrepresentation under the Consumer Credit Act 1974, requiring proof of a false statement of fact that induced the consumer into the agreement. The car dealer's response about health reasons was not factually incorrect. While Mr G asked about previous ownership, he did not request further research, and it was not unreasonable for the dealer not to conduct additional enquiries. Taxi use information is held on council databases not standard HPI checks, and the dealer was not expected to have access to this in 2021. The fact that other dealers could access this information in 2024-2025 does not mean the dealer should have had access in 2021. Mr G was aware of high mileage and agreed to purchase with the limited information available.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website