Upheld: Goods and services under S75 complaint against BLUE MOTOR FINANCE LIMITED

Decision detail

Summary

Mr R purchased a 2014 car with 95,000 miles under a hire purchase agreement with BMF for £5,500. Within weeks, the car developed brake and gearbox faults. An independent inspection confirmed these faults were developing prior to supply. After the supply dealership failed to fix the brakes and BMF did not respond to Mr R's request for car collection, Mr R arranged repairs at a third-party garage costing £560.74. BMF upheld the complaint but refused to reimburse repair costs. The ombudsman upheld the complaint, finding the car was of unsatisfactory quality and directing BMF to reimburse repair costs, refund payments during repair periods with interest, and pay £150 compensation.

The Ombudsman's reasoning

Under the Consumer Rights Act 2015, goods supplied under a hire purchase agreement must be of satisfactory quality. For an 11-year-old car with 95,000 miles at £5,500, a reasonable person would not expect significant faults shortly after supply. The independent inspection confirmed the gearbox and air leak faults were developing prior to supply, and brake issues emerged within days. The supply dealership's failed repair attempt and BMF's failure to respond to Mr R's reasonable request for car collection made it fair for Mr R to arrange repairs at a third-party garage. The additional repairs identified were wear-and-tear items not mentioned in inspection reports and therefore not attributable to unsatisfactory quality at supply.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website