Upheld: irresponsible lending / goods not of satisfactory quality / lack of durability complaint against Startline Motor Finance Limited
Financial Ombudsman decision DRN-6195807 of 2026-05-12T00:00:00+00:00. irresponsible lending / goods not of satisfactory quality / lack of durability complaint against Startline Motor Finance Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6195807 |
|---|---|
| Decision date | 2026-05-12T00:00:00+00:00 |
| Firm | Startline Motor Finance Limited |
| Product | hire purchase agreement |
| Claim type | irresponsible lending / goods not of satisfactory quality / lack of durability |
| Outcome | Upheld |
| Remedy | Startline Motor Finance Limited must: (1) End the finance agreement with no further liability for Mrs B; (2) Take back the car without charging for collection; (3) Refund the £1,000 deposit; (4) Refund all monthly repayments made from August 2025 onwards; (5) Refund additional expenses totalling £1,815; (6) Pay 8% simple interest on refunded amounts from date of payment to settlement; (7) Pay £300 compensation for distress; (8) Remove adverse credit information from August 2025 onwards if applicable. |
Summary
Mrs B purchased a used car via hire purchase with Startline Motor Finance Limited in May 2024 through dealership H. In September 2025, after approximately 22,500 miles, she complained that the steering rack required replacement and the turbocharger was failing. An independent report and manufacturer-approved garage confirmed that incorrect grade and volume of oil had been added to the car prior to delivery, causing premature turbocharger failure. Startline initially rejected the complaint, but the ombudsman upheld it, finding the car was not of satisfactory quality at point of supply. The ombudsman ordered Startline to end the agreement, take back the car, refund the deposit and all repayments from August 2025 onwards, reimburse expenses, pay £300 compensation, and remove adverse credit information.
The Ombudsman's reasoning
The ombudsman applied the Consumer Rights Act 2015, which implies that goods supplied under a hire purchase agreement must be of satisfactory quality at the point of supply. The ombudsman found the independent report to be the most persuasive evidence, showing oil contamination consistent with internal turbocharger oil seal failure caused by incorrect oil being used pre-delivery. Although Mrs B's complaint was raised outside the six-month presumption period, she provided sufficient evidence that the fault was present or developing at point of supply. The ombudsman rejected Startline's contradictory evidence from dealership H as less credible than the contemporaneous May 2024 health check. The ombudsman concluded the car lacked satisfactory durability, as the turbocharger failed prematurely after approximately 61,000 miles despite proper maintenance.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Startline Motor Finance Limited, all decisions | 495 | 50% |
Source
Read the original decision on the Financial Ombudsman Service website