Upheld: Goods and services under S75 complaint against BMW Financial Services (GB) Limited trading as MINI Financial Services
Financial Ombudsman decision DRN-6221596 of 2026-06-30T00:00:00+00:00. Goods and services under S75 complaint against BMW Financial Services (GB) Limited trading as MINI Financial Services. Outcome: Upheld.
Decision detail
| Reference | DRN-6221596 |
|---|---|
| Decision date | 2026-06-30T00:00:00+00:00 |
| Firm | BMW Financial Services (GB) Limited trading as MINI Financial Services |
| Product | Motor finance (PCP / HP) |
| Claim type | Goods and services under S75 |
| Outcome | Upheld |
| Remedy | BMWFS must: (1) End the hire purchase agreement ensuring Mr M is not liable for monthly payments after collection; (2) Collect the vehicle at no cost to Mr M; (3) Refund the £4,500 deposit plus 8% simple interest from the date of payment to the date of refund (retaining any portion attributable to dealer contribution); (4) Pay £150 compensation for distress and inconvenience; (5) Remove any adverse information about the agreement from Mr M's credit file. BMWFS may retain normal monthly payments up to the point of collection as reflection of Mr M's use of the vehicle after repair. |
Summary
Mr M purchased a new car through a hire purchase agreement with BMWFS for approximately £38,000. One day after collection, the dashboard display went blank while driving, preventing him from seeing vehicle speed and other critical information. The fault reoccurred six days later. Mr M reported the fault to the dealership and explicitly rejected repair, requesting rejection or replacement instead. BMWFS upheld his complaint but refused rejection, claiming repairs had been completed at no cost. The ombudsman found the vehicle was of unsatisfactory quality at the time of supply, as a reasonable person would not expect such a fault in a brand-new, reasonably high-value car. Mr M had clearly exercised his short-term right to reject within 30 days, so the ombudsman upheld the complaint and ordered BMWFS to end the agreement, refund the deposit with interest, collect the vehicle at no cost, and pay £150 compensation.
The Ombudsman's reasoning
The ombudsman found that under the Consumer Rights Act 2015, goods supplied under a hire purchase agreement must be of satisfactory quality. For a brand-new car priced at approximately £38,000, a reasonable person would expect it to be free from even minor defects for a considerable period. The fault reported by Mr M—the display going blank while driving, preventing him from seeing critical information including vehicle speed—was not minor and would not be expected in a new, reasonably high-value vehicle one day after acquisition. Although BMWFS argued only a software glitch occurred requiring a reset, the dealership investigation report documented a stored fault code and work performed, with the report stating the fault was no longer present. This constitutes evidence of a fault. BMWFS's own final response referred to the car being 'repaired' and upheld the complaint, contradicting their later position. Mr M clearly rejected repair and requested rejection or replacement within three weeks of acquisition, well within the 30-day short-term right to reject period. Therefore, Mr M is entitled to exercise his statutory right to reject the vehicle.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| BMW Financial Services (GB) Limited trading as MINI Financial Services, all decisions | 4 | 50% |
| Goods and services under S75, all decisions | 19,913 | 36% |
| Motor finance (PCP / HP), all decisions | 19,529 | 38% |
Source
Read the original decision on the Financial Ombudsman Service website