Not upheld: unsatisfactory quality of goods supplied under hire purchase agreement complaint against N.I.I.B. Group Limited trading as Northridge Finance

Decision detail

Summary

Miss H purchased a used car under a hire purchase agreement with Northridge Finance in September 2023. She complained about excessive oil consumption, warning lights, brakes, and windscreen wipers within six months of supply. Although multiple dealership inspections were conducted, an independent engineer's report concluded that the faults were not present or developing at the point of supply. The ombudsman found that the oil consumption was consistent with manufacturer guidelines for the high-mileage vehicle and upheld Northridge's position that they were not responsible for the faults, resulting in the complaint being not upheld.

The Ombudsman's reasoning

Although Miss H complained within six months of supply (triggering a presumption that faults were present at supply), the ombudsman found that the independent engineer's report, which the ombudsman considered reliable, concluded that the faults were not present or developing at the point of supply. The ombudsman calculated that the oil consumption, while potentially high, was consistent with the manufacturer's guidelines for a high-mileage engine (the car had done 56,924 miles at supply). The ombudsman noted that the misfire complaint came after six months and therefore did not benefit from the presumption. Based on the balance of probabilities and the independent engineer's findings, the ombudsman concluded there was no evidence of faults present or developing at supply.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website