Not upheld: Goods and services under S75 complaint against STARTLINE MOTOR FINANCE LIMITED
Financial Ombudsman decision DRN-6264333 of 2026-06-25T00:00:00+00:00. Goods and services under S75 complaint against STARTLINE MOTOR FINANCE LIMITED. Outcome: Not upheld.
Decision detail
| Reference | DRN-6264333 |
|---|---|
| Decision date | 2026-06-25T00:00:00+00:00 |
| Firm | STARTLINE MOTOR FINANCE LIMITED |
| Product | Motor finance (PCP / HP) |
| Claim type | Goods and services under S75 |
| Outcome | Not upheld |
| Remedy | SMF should action its offer to Mr R including: (1) refunding two monthly instalments; (2) retaining five repayments for fair use; (3) updating credit file to show agreement settled; (4) paying £300 for distress and inconvenience; and (5) refunding the deposit directly to Mr R without delay if the dealership has not already done so, or taking no further action if already refunded. |
Summary
Mr R purchased a used car via hire purchase with SMF in April 2025 but discovered a hybrid battery fault within weeks. After the dealership mishandled repairs, Mr R rejected the car as not of satisfactory quality. SMF partially upheld the complaint, offering to refund two monthly instalments, retain five for fair use, pay £300 compensation, and have the dealership refund the deposit subject to no damage. Mr R disputed the retention of five repayments and the compensation amount. The ombudsman found SMF's offer broadly fair, as Mr R had covered several thousand miles beyond repair-related mileage, but clarified that SMF should refund the deposit directly to Mr R without conditioning on damage, in line with established FOS practice.
The Ombudsman's reasoning
The ombudsman accepted SMF's position that the car was not of satisfactory quality and that rejection was appropriate. Regarding the retention of five monthly repayments for fair use, the ombudsman found that despite the car's unreliability and the circumstances of Mr R's use, he still covered several thousand miles beyond the dealership's 200 miles and the repair trip mileage, constituting fair use that could reasonably be deducted. The £300 award for distress and inconvenience was found reasonable given the inconvenience of multiple dealership visits and receiving an unsatisfactory car. On the deposit, the ombudsman clarified that established FOS practice requires finance companies to refund deposits directly without conditioning on damage, which should be treated separately.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| STARTLINE MOTOR FINANCE LIMITED, all decisions | 502 | 50% |
| Goods and services under S75, all decisions | 19,872 | 36% |
| Motor finance (PCP / HP), all decisions | 19,840 | 38% |
Source
Read the original decision on the Financial Ombudsman Service website