Not upheld: satisfactory quality of goods supplied under hire purchase agreement complaint against Mercedes-Benz Financial Services UK Limited

Decision detail

Summary

Miss S complained that a used car acquired through MBFS under a hire purchase agreement in April 2023 was not of satisfactory quality, citing multiple faults including bodywork issues, flickering dashboard, gearbox problems, and suspension concerns that persisted despite repairs over two years. MBFS rejected the complaint, noting Miss S did not raise concerns until more than a year after supply. The ombudsman found no evidence that the faults were present or developing at the point of supply and, in the absence of an independent engineer's report, could not hold MBFS responsible. The complaint was not upheld, with the ombudsman recommending Miss S obtain an independent inspection to establish fault origins.

The Ombudsman's reasoning

The ombudsman applied the Consumer Rights Act 2015 which implies that goods supplied must be of satisfactory quality. The key issue was whether the faults complained of were present or developing at the point of supply in April 2023. Given that Miss S did not raise concerns until more than a year after acquisition, and in the absence of an independent engineer's report demonstrating that faults were present at supply or resulted from failed repairs, the ombudsman could not conclude the car was not of satisfactory quality when supplied. The mere fact that problems arose does not establish they existed at the point of supply.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website