Not upheld: goods not of satisfactory quality; alleged mis-selling complaint against Marsh Finance & Commercial Limited

Decision detail

Summary

Mr R purchased a car financed through a hire purchase agreement with Marsh Finance in December 2023 and reported overheating issues within the first month. He discovered a 2020 invoice indicating prior investigation for engine overheating and claimed this proved a pre-existing fault, making the car not of satisfactory quality and mis-sold. Marsh Finance obtained an independent inspection concluding the vehicle was of satisfactory quality at point of sale and that current faults developed progressively during use. The ombudsman found the inspection credible, noting the previous owner had driven the car 79,303 miles with no engine issues documented at MOT inspections, and rejected Mr R's challenge to the inspector's qualifications. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the legal test for satisfactory quality, considering the car's age, mileage, and price. While acknowledging a problem exists with the vehicle, the ombudsman found the independent inspection credible and persuasive. The 2020 invoice only mentioned 'investigate engine overheating' without confirming a problem or detailing repairs. The previous owner's ability to drive 79,303 miles with no engine issues noted at MOT inspections, combined with the inspection's conclusion that faults developed progressively after sale, led the ombudsman to conclude on the balance of probabilities that the faults were not present at point of supply. The ombudsman rejected Mr R's challenge to the inspector's qualifications, finding no reason to dispute the inspector's credentials or testimony regarding the test drive.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website