Partially upheld: satisfactory quality of goods supplied under consumer credit contract; complaint handling complaint against Advantage Finance Limited

Decision detail

Summary

Mr H purchased a used car via hire purchase agreement with Advantage in March 2025. The car broke down in June 2025 due to a cracked sump causing oil loss. Mr H complained and sought to reject the car, but Advantage refused after an independent inspection concluded the fault was not present at point of supply. The ombudsman upheld the complaint in part, finding the car was of satisfactory quality but that Advantage's handling of the complaint—initially suggesting rejection was possible then retracting—caused distress warranting £150 compensation.

The Ombudsman's reasoning

The ombudsman applied the Consumer Rights Act 2015 standard of satisfactory quality, considering the car's age (6.5 years), mileage (110,885 miles), price (£10,250), and used condition. The independent engineer's conclusion that the fault was not present at point of supply was persuasive, particularly given that an oil leak of this nature would have presented itself much sooner if present initially. The car was reasonably durable for its age and mileage. However, Advantage's handling of the complaint—initially suggesting rejection was possible then retracting—caused distress and inconvenience warranting compensation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website