Partially upheld: unfair end of contract charges complaint against FCE Bank Plc (trading as Ford Credit)

Decision detail

Summary

Mr M complained about end of contract charges applied by FCE Bank Plc after returning a financed car, disputing charges for damage, missing items, and service history. An independent inspection identified various damage and missing items, which FCE charged against. The ombudsman found that most charges were fair and supported by inspection evidence and industry guidance, but determined that the front left wheel damage charge was not justified as the damage was below the 50mm threshold allowed. FCE was ordered to waive only the front left wheel charge, with all other charges upheld as reasonable.

The Ombudsman's reasoning

The ombudsman applied the balance of probabilities standard where information was incomplete or contradictory. For damage charges, the inspection evidence supported FCE's position that vehicle condition exceeded fair wear and tear standards under industry guidance, except for the front left wheel where damage was less than the 50mm threshold. The parcel shelf charge was reasonable as the vehicle would have been moved quickly after return, incurring loss before the shelf was later returned. The service history charge was reasonable as the finance agreement placed maintenance responsibility on the customer. Process and communication concerns did not make the charges themselves unfair, and FCE was not liable for dealership errors during return.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website