Partially upheld: unsatisfactory quality of goods and poor customer service complaint against Volkswagen Financial Services (UK) Limited

Decision detail

Summary

Mr K purchased a used car under a hire purchase agreement with VWFS on 14 March 2025. Seven days later, he reported multiple faults including gearbox, clutch, engine, brake, and infotainment issues. The dealership completed repairs on 21 March 2025 and a manufacturer's software recall on 24 March 2025. Mr K refused to collect the car and sought rejection and termination of the agreement. The ombudsman found that the repairs were successfully completed, constituting the single chance of repair under the Consumer Rights Act 2015, and therefore Mr K had no right to reject. However, the ombudsman upheld the complaint regarding poor customer service and communication delays, requiring VWFS to pay the £1,201 compensation they had already offered.

The Ombudsman's reasoning

Under the Consumer Rights Act 2015, goods must be of satisfactory quality when supplied. While the car had faults when supplied, the dealership completed a full repair and manufacturer's software recall, which constituted the single chance of repair allowed under the CRA. There is no evidence the repairs failed. Mr K's right to reject only exists if the repair was unsuccessful. The cosmetic issues were clear and obvious defects which Mr K had the opportunity to examine before purchase, so these do not make the car unsatisfactory under section 9(4) of the CRA. However, VWFS's poor communication and lack of timely updates warranted compensation for trouble and inconvenience.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website