Upheld: goods not of satisfactory quality; irresponsible lending (hire purchase) complaint against N.I.I.B. Group Limited trading as Northridge Finance

Decision detail

Summary

Mr R purchased a used car via hire purchase agreement with Northridge Finance in July 2025. Within two weeks, he discovered cracked wheels causing tyre pressure failures and paid £1,366.81 for repairs. Northridge refused reimbursement, claiming the car was in satisfactory condition when supplied and that damage occurred after purchase. The ombudsman upheld the complaint, finding that Northridge failed to provide sufficient evidence to rebut the statutory presumption that faults present within six months of supply were present at the point of supply. The ombudsman ordered Northridge to reimburse repair costs, refund pro rata payment for loss of use, pay interest, and provide £150 compensation for distress.

The Ombudsman's reasoning

The ombudsman applied the Consumer Rights Act 2015, which places the burden on the supplier (Northridge) to demonstrate that goods were of satisfactory quality at point of supply. While Northridge argued new tyres were fitted before supply and that damage was caused by impact after purchase, the ombudsman found insufficient evidence to rebut the statutory presumption. Critically, there was no evidence from the garage that actually fitted the tyres confirming wheels were undamaged, no documented pre-supply inspection, and the mileage discrepancy raised questions about the car's usage history. The ombudsman found it more likely that damage occurred before supply and that Mr R's decision to repair the car promptly was reasonable given his caring responsibilities and need to use the vehicle.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website