Upheld: irresponsible lending / goods not of satisfactory quality complaint against CA Auto Finance UK Ltd
Financial Ombudsman decision DRN-6258037 of 2026-05-22T00:00:00+00:00. irresponsible lending / goods not of satisfactory quality complaint against CA Auto Finance UK Ltd. Outcome: Upheld.
Decision detail
| Reference | DRN-6258037 |
|---|---|
| Decision date | 2026-05-22T00:00:00+00:00 |
| Firm | CA Auto Finance UK Ltd |
| Product | hire purchase agreement |
| Claim type | irresponsible lending / goods not of satisfactory quality |
| Outcome | Upheld |
| Remedy | CA Auto Finance UK Ltd must: (1) allow Mr H to exit the hire purchase agreement with no further payment and collect the car; (2) remove any adverse credit information about the agreement; (3) refund repayments made from June 2025 onwards to settlement date; (4) refund the advance payment of £3,600; (5) add 8% per annum simple interest to refunds from the dates paid to settlement; (6) pay £250 for distress and inconvenience. Payment required within 28 days, with further interest at 8% per annum simple if payment is late. |
Summary
Mr H purchased a used car via hire purchase with CA Auto Finance UK Ltd in November 2024. Within a week, he identified a gearbox fault that required £720 of repairs three months later. The repair failed within four months, with the same problem recurring. CA Auto declined Mr H's request to reject the car, citing the free repair and mileage driven. The ombudsman upheld the complaint, finding the car was not of satisfactory quality at supply and the repair had failed. CA Auto was ordered to end the agreement, refund repayments from June 2025 onwards plus the advance payment with interest, remove adverse credit information, and pay £250 compensation.
The Ombudsman's reasoning
The ombudsman applied the Consumer Rights Act 2015, which implies that goods supplied under a hire purchase agreement must be of satisfactory quality. For a used car of this age and mileage, a reasonable person would expect it to be free of major faults. The evidence showed a significant gearbox fault existed at the point of sale, evidenced by the £720 repair required within three months and only 1,000 miles of use. Although Mr H initially agreed to a repair, the repair failed within four months, with the same fault recurring. The ombudsman concluded the car was not of satisfactory quality at supply and remained unsatisfactory after the failed repair. Therefore, Mr H was entitled to reject the goods and receive a remedy to restore him to his pre-agreement position.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| CA Auto Finance UK Ltd, all decisions | 226 | 55% |
Source
Read the original decision on the Financial Ombudsman Service website