Upheld: Goods and services under S75 complaint against STARTLINE MOTOR FINANCE LIMITED
Financial Ombudsman decision DRN-6193978 of 2026-06-18T00:00:00+00:00. Goods and services under S75 complaint against STARTLINE MOTOR FINANCE LIMITED. Outcome: Upheld.
Decision detail
| Reference | DRN-6193978 |
|---|---|
| Decision date | 2026-06-18T00:00:00+00:00 |
| Firm | STARTLINE MOTOR FINANCE LIMITED |
| Product | Motor finance (PCP / HP) |
| Claim type | Goods and services under S75 |
| Outcome | Upheld |
| Remedy | SMFL must either: (A) arrange and cover the cost of repairs (or reimburse if already completed), refund all rentals from February 2025 until repair completion, and pay £250 compensation; or (B) if repairs are uneconomical, allow rejection of the car, refund the £100 deposit, refund all rentals from February 2025 onwards, remove adverse credit file information, and pay £250 compensation. In both cases, SMFL must reimburse additional costs incurred (transport and inspection) with 8% simple interest per year from date of payment, and pay £250 for distress and inconvenience. |
Summary
Miss A purchased a seven-year-old used car with 55,540 miles through a hire purchase agreement with SMFL in March 2024 for approximately £8,500. In February 2025, after travelling a further 12,500 miles, the car developed a wet belt failure. SMFL rejected Miss A's complaint, arguing the mileage travelled suggested the fault was not present at sale. The ombudsman upheld the complaint, finding the car was not of satisfactory quality because the wet belt was not reasonably durable, having exceeded or neared the end of its expected service life at the point of sale based on independent industry recommendations. SMFL was ordered to either repair the car at no cost with refund of rentals and compensation, or allow rejection with refund of deposit and all subsequent rentals, plus £250 compensation for distress and inconvenience.
The Ombudsman's reasoning
The ombudsman applied the Consumer Rights Act 2015, which requires goods supplied under a regulated hire purchase agreement to be of satisfactory quality, with durability being a key aspect. A reasonable person would expect a used car of this age and mileage to be free from major failures and provide trouble-free motoring for some time and distance. Although the car was roadworthy at point of sale, the wet belt had exceeded or was nearing the end of its expected service life based on independent recommendations, making it not reasonably durable. The ombudsman rejected SMFL's argument about Miss A's maintenance, finding the car was not significantly overdue for service at the point of failure.
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