Upheld: Goods and services under S75 complaint against N.I.I.B. Group Limited trading as Northridge Finance
Financial Ombudsman decision DRN-6134893 of 2026-06-22T00:00:00+00:00. Goods and services under S75 complaint against N.I.I.B. Group Limited trading as Northridge Finance. Outcome: Upheld.
Decision detail
| Reference | DRN-6134893 |
|---|---|
| Decision date | 2026-06-22T00:00:00+00:00 |
| Firm | N.I.I.B. Group Limited trading as Northridge Finance |
| Product | Motor finance (PCP / HP) |
| Claim type | Goods and services under S75 |
| Outcome | Upheld |
| Remedy | NRF must: (1) End the hire purchase agreement with no further monthly payments required and collect the vehicle at no cost to Mr L; (2) Refund Mr L's £2,000.00 deposit (minus any dealer contributions); (3) Refund repair costs of £2,215.44; (4) Pay 8% simple yearly interest on all refunds from the date payments were made; (5) Pay £150.00 for distress and inconvenience; (6) Remove any adverse credit file information relating to the agreement. |
Summary
Mr L purchased a used car (3 years 10 months old, 38,450 miles) under a hire purchase agreement with Northridge Finance in September 2024. After approximately 9,000 miles of use, the vehicle developed faults in the gearbox transmission area. Mr L paid for repairs at a manufacturer-linked repairer, but further significant work was diagnosed. An independent inspection confirmed the vehicle lacked durability. The ombudsman upheld Mr L's complaint, finding the vehicle was not of satisfactory quality under the Consumer Rights Act 2015, as a reasonable person would expect the failed parts to have lasted significantly longer. NRF was ordered to end the agreement, recover the vehicle at no cost, refund the deposit and repair costs with interest, and pay £150 for distress and inconvenience.
The Ombudsman's reasoning
The ombudsman applied the Consumer Rights Act 2015, which requires goods to be of satisfactory quality, including durability. While the independent inspector stated the faults were not present at point of sale, the inspector also confirmed the vehicle lacked durability. The ombudsman found that a reasonable person would expect the failed parts to have lasted significantly longer given the vehicle's age (3 years 10 months), mileage (38,450 miles at purchase, 9,000 miles post-sale), and the price paid. The ombudsman rejected NRF's argument that 9,000 miles constituted extended use, finding it reasonable to expect the vehicle to last much longer. NRF had the inspection information showing lack of durability but failed to take steps to repair the vehicle within a reasonable timeframe, making rejection the fair remedy.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| N.I.I.B. Group Limited trading as Northridge Finance, all decisions | 17 | 47% |
| Goods and services under S75, all decisions | 19,872 | 36% |
| Motor finance (PCP / HP), all decisions | 19,840 | 38% |
Source
Read the original decision on the Financial Ombudsman Service website