Partially upheld: unfair end of contract charges; insufficient evidence of damage complaint against Mercedes-Benz Financial Services UK Limited

Decision detail

Summary

Mrs G complained about end of contract charges applied by MBFS following voluntary termination of a hire purchase agreement for a vehicle in August 2025. MBFS charged £1,096.50 for various damage items, which Mrs G disputed, claiming the dealership had verbally assured her no charges would apply and that the charges were disproportionate. The ombudsman found that most damage charges (front bumper scratch, rear bumper scratches, and wheel rim damage) were fairly applied and clearly evidenced against fair wear and tear standards. However, the ombudsman upheld the complaint regarding the tailgate dent charge (£35.00), finding that MBFS failed to clearly evidence this damage in the inspection images provided. The ombudsman rejected Mrs G's reliance on alleged verbal assurances from the dealership, noting these could not override fairly applied charges.

The Ombudsman's reasoning

The ombudsman applied the BVRLA fair wear and tear guidance and MBFS's own Vehicle Return Standards as industry benchmarks. For the disputed charges, the ombudsman found that images reasonably demonstrated the front bumper scratch, rear bumper scratches, and wheel rim damage exceeded fair wear and tear standards. However, the ombudsman concluded that MBFS failed to clearly evidence the tailgate dent in the images provided, and therefore the charge could not be fairly applied. The ombudsman rejected Mrs G's arguments regarding verbal assurances from the dealership, noting these could not override fairly applied charges and the dealership may not have had authority to make such commitments.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website