Upheld: Goods and services under S75 complaint against Startline Motor Finance Limited

Decision detail

Summary

Ms O purchased a used car through a hire purchase agreement with Startline Motor Finance Limited in December 2024. In August 2025, approximately eight months after supply, the car's dashboard control unit failed, and further issues developed in September 2025 rendering the car undrivable. Startline initially rejected the complaint arguing Ms O had not proven the fault was present at supply, relying on the six-month presumption period under the Consumer Rights Act 2015. The ombudsman upheld the complaint, finding that although the fault occurred outside the six-month period, the control unit's premature failure after six and a half years and 47,000 miles (when such units typically last 15-20+ years) demonstrated lack of durability, making the car unsatisfactory quality when supplied. Startline was ordered to reimburse repair and diagnostic costs, refund payments for the period the car was undrivable, and pay £200 compensation.

The Ombudsman's reasoning

The ombudsman applied the Consumer Rights Act 2015, which requires goods to be of satisfactory quality when supplied. While the fault occurred more than six months after supply (outside the presumption period), the CRA also requires goods to be sufficiently durable. The control unit failing after approximately six and a half years and 47,000 miles is premature given the expected lifespan of 15-20+ years. In the absence of evidence that the failure was due to external factors such as moisture ingress, thermal stress, or voltage spikes, the ombudsman concluded it was more likely than not that the failure resulted from lack of durability, making the car unsatisfactory quality when supplied. Startline therefore must reimburse costs and refund payments for the period the car was undrivable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website