Upheld: Goods and services under S75 complaint against BMW Financial Services(GB) Limited trading as ALPHERA Financial Services
Financial Ombudsman decision DRN-6214409 of 2026-06-18T00:00:00+00:00. Goods and services under S75 complaint against BMW Financial Services(GB) Limited trading as ALPHERA Financial Services. Outcome: Upheld.
Decision detail
| Reference | DRN-6214409 |
|---|---|
| Decision date | 2026-06-18T00:00:00+00:00 |
| Firm | BMW Financial Services(GB) Limited trading as ALPHERA Financial Services |
| Product | Motor finance (PCP / HP) |
| Claim type | Goods and services under S75 |
| Outcome | Upheld |
| Remedy | End finance agreement with no further payments required. Reimburse all monthly payments from 16 December 2024 onwards. Reimburse evidenced diagnostic costs including independent inspection report. Pay 8% simple interest per year on refunded amounts from date of payment until settlement. Pay £250.00 directly to Mr T for distress and inconvenience. Collect vehicle at no cost to Mr T. Remove adverse credit file information. |
Summary
Mr T purchased a used car (3 years 10 months old, 67,883 miles) under a hire purchase agreement with ALPHERA Financial Services in July 2024. Approximately five months into the agreement, the timing chain broke, rendering the vehicle unusable from December 2024. ALPHERA rejected Mr T's complaint, but the FOS investigator upheld it, finding the vehicle was not of satisfactory quality due to premature durability failure. The ombudsman upheld the complaint and ordered ALPHERA to end the agreement, reimburse payments from December 2024, cover diagnostic costs, pay £250 for distress and inconvenience, and collect the vehicle at no cost to Mr T.
The Ombudsman's reasoning
Under the Consumer Rights Act 2015, goods must be of satisfactory quality, which includes durability. For a used car of this age and mileage, a reasonable person would expect the timing chain to last longer than it did. The independent inspection confirmed the part failed unexpectedly for a vehicle of this age and mileage. As repairs were not completed within a reasonable timeframe after the December 2024 failure, rejection of the vehicle is the appropriate remedy.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| BMW Financial Services(GB) Limited trading as ALPHERA Financial Services, all decisions | 41 | 43% |
| 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