Upheld: unsatisfactory quality of goods / breach of Consumer Rights Act 2015 complaint against Camco Finance Limited
Financial Ombudsman decision DRN-6285405 of 2026-05-13T00:00:00+00:00. unsatisfactory quality of goods / breach of Consumer Rights Act 2015 complaint against Camco Finance Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6285405 |
|---|---|
| Decision date | 2026-05-13T00:00:00+00:00 |
| Firm | Camco Finance Limited |
| Product | hire purchase agreement |
| Claim type | unsatisfactory quality of goods / breach of Consumer Rights Act 2015 |
| Outcome | Upheld |
| Remedy | Camco Finance Limited must: (1) end the hire purchase agreement with no further liability for Mr B; (2) collect the motorhome at no cost to Mr B; (3) refund the deposit paid; (4) refund all payments made from September 2025 to date of collection; (5) apply 8% simple yearly interest on refunds from date of payment to date of refund; (6) remove adverse credit file entries; (7) pay £858.01 compensation (comprising £608.01 previously offered plus £250 additional) within 28 days, with 8% interest if paid late. |
Summary
Mr B purchased a used motorhome via hire purchase agreement with Camco Finance Limited in April 2025. The motorhome developed multiple faults shortly after supply, including brake and tyre issues. Although the dealership carried out repairs, an independent MOT testing station inspection in September 2025 (within six months of supply) found the brake discs worn to MOT failure point, and the motorhome subsequently failed its MOT in January 2026 for the same reason. Camco's independent engineer inspection found no faults, but the ombudsman found this report unreliable due to factual errors and its failure to identify defects evident weeks earlier. Applying the Consumer Rights Act 2015, the ombudsman found Camco failed to prove the brake issues were not present or developing at supply, and since the single permitted repair was unsuccessful, Mr B was entitled to reject the motorhome. Camco was ordered to end the agreement, refund the deposit and all payments from September 2025 onwards, reimburse repair costs, and pay £858.01 compensation.
The Ombudsman's reasoning
The ombudsman applied the Consumer Rights Act 2015, which requires goods to be of satisfactory quality at the point of supply and presumes faults identified within six months were present or developing at supply unless the supplier proves otherwise. Although the motorhome passed an MOT two months before supply, the evidence from the independent MOT testing station dated 18 September 2025 (within six months of supply) showed brake discs worn to MOT failure point, and the motorhome subsequently failed its MOT in January 2026 for the same reason. The ombudsman found the independent engineer's report unreliable due to factual errors and because it failed to identify faults that were evident weeks earlier. Camco failed to discharge their burden of proof that the brake issues were not present or developing at supply. The single chance of repair allowed under the CRA was unsuccessful, entitling Mr B to reject the motorhome.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Camco Finance Limited, all decisions | 1 | 100% |
Source
Read the original decision on the Financial Ombudsman Service website