Upheld: unsatisfactory quality of goods / breach of Consumer Rights Act 2015 complaint against Startline Motor Finance Limited

Decision detail

Summary

Miss S purchased a used car through a hire purchase agreement with Startline Motor Finance Limited in May 2025. The car developed serious faults including loss of power, shaking, and ECU software issues within the first month of use. Miss S obtained three diagnostic reports totalling £630 to identify the faults, which were eventually repaired at no cost to her between September and November 2025. Startline refused to reimburse the diagnostic costs, arguing Miss S should have contacted them first. The ombudsman upheld Miss S's complaint, finding the car was not of satisfactory quality when supplied and ordering Startline to refund the diagnostic costs, full monthly payments during the repair period, 10% of payments during periods of impaired usage, plus interest.

The Ombudsman's reasoning

The ombudsman found that the car was undisputedly faulty when supplied to Miss S, with faults arising within the first six months, indicating they were present at supply. Under the Consumer Rights Act 2015, goods must be of satisfactory quality, taking into account the age, mileage, and price. The ombudsman determined that Miss S acted reasonably in obtaining diagnostic reports by following expert guidance, and that these reports contained the exact information Startline would have requested had she contacted them first. Therefore, it was fair and reasonable for Startline to reimburse the diagnostic costs. Additionally, as the car was off the road due to unsatisfactory quality and Miss S was not provided a courtesy car during the repair period, Startline should refund full payments for that period. For periods when the car was in use but faulty, a 10% refund was appropriate to reflect impaired usage.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website