Not upheld: quality of goods/satisfactory quality of car supplied under consumer credit agreement complaint against Moneybarn Limited

Decision detail

Summary

Mr S complained about the quality of a used car financed through a conditional sale agreement with Moneybarn. The car broke down in October 2025, and while Moneybarn agreed to repair it and offered compensation, subsequent faults with the flywheel and clutch were identified. Mr S disputed Moneybarn's rejection of liability for these additional faults. The ombudsman upheld Moneybarn's position, finding that the flywheel and clutch faults were due to normal wear and tear on a nine-year-old vehicle rather than pre-existing defects, supported by an independent inspection. The ombudsman determined that Moneybarn's redress for the October 2025 fault was fair and reasonable, and no further action was required.

The Ombudsman's reasoning

The ombudsman applied the Consumer Rights Act (2015) standard that goods must be of satisfactory quality when supplied, adjusted for a nine-year-old vehicle with 55,000 miles. While faults within six months are presumed pre-existing unless the supplier proves otherwise, the flywheel and clutch faults were identified after the six-month period. The independent inspector's expert opinion that these are serviceable items subject to wear and tear, combined with the substantial mileage and time elapsed since supply without incident, persuaded the ombudsman that these faults were not pre-existing. Moneybarn's redress for the earlier October 2025 fault (refund of instalments and £150 compensation) was deemed fair and avoided duplication by not also refunding travel expenses.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website