Not upheld: misrepresentation and breach of contract - goods not as described complaint against RCI Financial Services Limited trading as Mobilize Financial Services (MFS)

Decision detail

Summary

Mr M complained that a car acquired under a hire purchase agreement with MFS was misrepresented, claiming it was advertised as a 4x4 with various features but was actually a 4x2 lacking several advertised features including a 4x4 monitor, altimeter, compass function, eCall emergency system, and interior trim details. Although the advertisement did contain incorrect information about the 4x4 specification, Mr M was aware of this before entering the agreement and had visually inspected the car. The ombudsman found that the ESC/ASR traction system and eCall emergency system are standard legislative requirements on this car model and year, and therefore most likely present. The ombudsman concluded there was insufficient evidence of misrepresentation or breach of contract and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman applied the test for misrepresentation requiring a false statement of fact that induced the contract. The key finding was that Mr M was aware before entering the agreement that the advertisement was incorrect regarding the 4x4 specification. The ombudsman found that ESC/ASR traction system and eCall emergency system are standard legislative requirements on this car model and year, and therefore most likely present despite Mr M's concerns about missing buttons or SOS buttons. The ombudsman noted Mr M had the opportunity to visually inspect the car and question features before acquisition. Insufficient evidence was provided to establish that other claimed missing features were promised before acquisition.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website