Not upheld: unfair charges and contract termination handling complaint against Black Horse Limited

Decision detail

Summary

Mr N complained that Black Horse Limited acted unfairly by retaining a usage charge when he rejected a faulty car under his consumer rights. Black Horse had accepted the rejection, offered to refund payments for the period the car was unusable, provided £200 compensation, and agreed to refund consequential losses upon proof. The ombudsman found Black Horse's retention of a 35p per mile usage charge to be fair and reasonable, as it reflected industry standard practice for calculating vehicle depreciation and Mr N had full use of the car during the period in question. The ombudsman upheld Black Horse's offer as appropriate and proportionate, rejecting Mr N's argument that full rescission required a complete refund of all monies paid.

The Ombudsman's reasoning

The ombudsman found that while Mr N was entitled to reject the faulty car and receive a refund, it was fair and reasonable for Black Horse to retain a charge for usage based on mileage travelled. The 35p per mile rate used by Black Horse was consistent with industry standards and matched the dealership's own proposal, so Mr N was not offered a worse deal. The ombudsman agreed that consequential losses (insurance admin fees and cherished plate retention fee) should be refunded upon proof, and that £200 compensation was fair for the distress and inconvenience caused by the faulty car and resolution process.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website