Upheld: unsatisfactory quality of goods / defective product complaint against Black Horse Limited
Financial Ombudsman decision DRN-6221981 of 2026-06-01T00:00:00+00:00. unsatisfactory quality of goods / defective product complaint against Black Horse Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6221981 |
|---|---|
| Decision date | 2026-06-01T00:00:00+00:00 |
| Firm | Black Horse Limited |
| Product | hire purchase agreement (car finance) |
| Claim type | unsatisfactory quality of goods / defective product |
| Outcome | Upheld |
| Remedy | BHL directed to pay additional £200 compensation to Mr L for distress and inconvenience caused by being supplied with a car that was not of satisfactory quality. Total compensation package of £300 to be paid. |
Summary
Mr L purchased a used four-year-old car via hire purchase with Black Horse Limited in September 2024 for £15,199. The car developed an AdBlue system fault shortly after supply, requiring tank replacement in November/December 2024 and later injector replacement in July 2025. Mr L complained in October 2025 seeking to reject the vehicle, arguing it was of unsatisfactory quality. BHL upheld the complaint in part, offering £151.80 initially and later increasing compensation to £300. The ombudsman found the car was indeed not of satisfactory quality at supply, but Mr L's right to reject was waived by accepting repairs and continuing to use the vehicle. The ombudsman upheld the complaint and directed BHL to pay the additional £200 compensation, finding the total £300 offer fair and reasonable.
The Ombudsman's reasoning
The ombudsman found the car was not of satisfactory quality at point of supply due to the AdBlue system fault occurring within six months. However, under Section 24(5) of the Consumer Rights Act 2015, BHL was entitled to one opportunity to repair before rejection rights arose. Mr L accepted the repairs, which were completed successfully, and continued using the vehicle, thereby waiving his right to reject. The compensation of £300 (£100 initial plus £200 additional) was considered fair and reasonable given the circumstances, the successful repair outcome, and the distress and inconvenience caused.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Black Horse Limited, all decisions | 1,452 | 27% |
Source
Read the original decision on the Financial Ombudsman Service website