Upheld: irresponsible lending / goods not of satisfactory quality / failure to repair complaint against Startline Motor Finance Limited
Financial Ombudsman decision DRN-6215870 of 2026-05-27T00:00:00+00:00. irresponsible lending / goods not of satisfactory quality / failure to repair complaint against Startline Motor Finance Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6215870 |
|---|---|
| Decision date | 2026-05-27T00:00:00+00:00 |
| Firm | Startline Motor Finance Limited |
| Product | hire purchase agreement |
| Claim type | irresponsible lending / goods not of satisfactory quality / failure to repair |
| Outcome | Upheld |
| Remedy | Startline Motor Finance Limited must: (1) End the finance agreement ensuring Mrs D is not liable for any monthly repayments after collection; (2) Take the car back without charging Mrs D for collection; (3) Refund all monthly repayments made from July 2025; (4) Pay 8% simple interest on refunded repayments from date of payment until settlement; (5) Pay £300 compensation for distress caused; (6) Remove any adverse information relating to this agreement from Mrs D's credit file. |
Summary
Mrs D acquired a used car under a hire purchase agreement with Startline in May 2024. Within days, she reported multiple defects including an illuminated engine management light, non-working cameras, and issues with the EGR filter and rear differentials. A health check in June 2024 confirmed these faults. The dealership took the car for two months (October-December 2024) to undertake repairs, but the same defects persisted afterwards. Startline relied on an amended independent inspection report claiming the faults were wear and tear, not present at supply, but this report contained material inaccuracies. The ombudsman found the car was not of satisfactory quality at supply, one repair attempt had failed, and Mrs D was entitled to reject it. Startline was ordered to end the agreement, take back the car, refund repayments from July 2025 with interest, pay £300 compensation, and remove adverse credit file 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. For a used car of this age and mileage, satisfactory quality means meeting the standard a reasonable person would find acceptable. The ombudsman found that: (1) Mrs D reported defects within days of supply; (2) a health check confirmed significant faults; (3) one repair attempt was made between October-December 2024; (4) the same faults persisted after repair, including the rear camera which O specifically agreed to fix; (5) Startline failed to evidence what repairs were completed; (6) the amended independent report relied upon by Startline contained material inaccuracies (stating Mrs D acquired the car on 19 June 2024 when it was actually 2 May 2024) and was therefore unreliable; (7) the initial inspection report was more credible as it contained accurate details. The ombudsman concluded that Startline's one opportunity to repair had been exhausted and the car still did not conform to the contract, therefore Mrs D was entitled to reject it under the CRA.
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