Upheld: Goods and services under S75 complaint against Volkswagen Financial Services (UK) limited trading as Audi Financial Services
Financial Ombudsman decision DRN-6145519 of 2026-06-23T00:00:00+00:00. Goods and services under S75 complaint against Volkswagen Financial Services (UK) limited trading as Audi Financial Services. Outcome: Upheld.
Decision detail
| Reference | DRN-6145519 |
|---|---|
| Decision date | 2026-06-23T00:00:00+00:00 |
| Firm | Volkswagen Financial Services (UK) limited trading as Audi Financial Services |
| Product | Motor finance (PCP / HP) |
| Claim type | Goods and services under S75 |
| Outcome | Upheld |
| Remedy | VWFS instructed to: (1) Refund £632.46 for loss of use of car during repairs in September 2023 and July 2025; (2) Pay £175 for distress and inconvenience; (3) Pay simple yearly interest at 8% on refunds from date of Miss B's payment to date of settlement; (4) Deduct any payments already made from this direction. |
Summary
Miss B purchased a used car via hire purchase from VWFS in July 2023. After experiencing water ingress issues in September 2023 and brake problems in June 2025, she complained to VWFS in September 2025. VWFS offered £600 compensation but Miss B sought to reject the car. The ombudsman upheld the complaint in part, finding insufficient evidence that the car was of unsatisfactory quality when supplied (as faults emerged after six months), but agreed Miss B deserved compensation for loss of use during repairs. The ombudsman increased the refund to £632.46 plus £175 for distress and inconvenience, with 8% annual interest applied.
The Ombudsman's reasoning
The ombudsman applied the Consumer Rights Act 2015, which requires goods to be of satisfactory quality when supplied. Since the brake issues were identified after six months of ownership (June 2025, nearly two years after supply), Miss B bore the burden of proving the car was of unsatisfactory quality when supplied. Without persuasive evidence of what was wrong with the brakes or that any fault was present at supply, the ombudsman could not conclude the car was of unsatisfactory quality. However, the ombudsman agreed that Miss B should be compensated for periods when the car was off the road for repairs, and increased the refund to reflect two weeks in September 2023 and 7-10 days in July 2025.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Volkswagen Financial Services (UK) limited trading as Audi Financial Services, all decisions | 12 | 29% |
| 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