Upheld: Goods and services under S75 complaint against STARTLINE MOTOR FINANCE LIMITED
Financial Ombudsman decision DRN-6193029 of 2026-06-19T00:00:00+00:00. Goods and services under S75 complaint against STARTLINE MOTOR FINANCE LIMITED. Outcome: Upheld.
Decision detail
| Reference | DRN-6193029 |
|---|---|
| Decision date | 2026-06-19T00:00:00+00:00 |
| Firm | STARTLINE MOTOR FINANCE LIMITED |
| Product | Motor finance (PCP / HP) |
| Claim type | Goods and services under S75 |
| Outcome | Upheld |
| Remedy | SMF must: (1) End the hire purchase agreement with nothing further to pay in relation to monthly payments; (2) Arrange to collect the vehicle at no cost to Mr C; (3) Reimburse recovery costs of £99; (4) Reimburse monthly instalments paid from April 2025 onwards with 8% simple yearly interest calculated from payment date to refund date; (5) Pay £200.00 for distress and inconvenience; (6) Remove any incorrect adverse information from Mr C's credit file in relation to the agreement. |
Summary
Mr C purchased a used car (8+ years old, 69,826 miles) under a hire purchase agreement with SMF in April 2025. Shortly after purchase, the keycard hands-free entry system malfunctioned and the vehicle broke down due to water pump pulley and drive belt issues. Mr C contacted the dealership and paid for repairs after being told they would not be covered under warranty. The same fault recurred in July 2025. SMF rejected Mr C's complaint, claiming the repairs were unauthorised and the keyless entry system had no fault. An independent inspection confirmed both faults. The FOS ombudsman upheld the complaint, finding the vehicle was not of satisfactory quality at supply, and ordered SMF to end the agreement, collect the vehicle, and reimburse Mr C's payments plus interest, recovery costs, and £200 for distress and inconvenience.
The Ombudsman's reasoning
The ombudsman applied the Consumer Rights Act 2015, which implies that goods supplied must be of satisfactory quality, fit for purpose, and as described. For a used car of 8+ years old with nearly 70,000 miles, a reasonable person would expect some wear and tear, but the vehicle should still be of satisfactory quality. The ombudsman found that the keycard hands-free system (referred to as keyless entry by the manufacturer) was not operational, and the water pump pulley/drive belt faults occurred very shortly after purchase and recurred after repair, indicating the faults were present at time of supply. The ombudsman accepted Mr C's plausible testimony supported by phone records that he contacted the dealership, meaning the first repair was likely authorised. Given the faults and failed repair, Mr C has the right to reject the vehicle. SMF failed to repair the vehicle within a reasonable timeframe despite Mr C's complaint.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| STARTLINE MOTOR FINANCE LIMITED, all decisions | 502 | 50% |
| 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