Upheld: Goods and services under S75 complaint against N.I.I.B. Group Limited trading as Northridge Finance

Decision detail

Summary

Mr L purchased a used four-year-old car with 65,000 miles under a hire purchase agreement with Northridge Finance in May 2025. Multiple faults were reported within days of acquisition, and despite several repair attempts by the dealership, the issues remained unresolved. Mr L complained in September 2025 and exercised his right to reject the car, which was not collected until January 2026. Northridge Finance upheld the complaint and offered to refund eight monthly payments (subject to a mileage deduction), the deposit, the diagnostic report cost, and £450 for inconvenience. The ombudsman found this offer fair but required Northridge Finance to add interest to all refunded amounts from the date of payment until settlement to properly compensate Mr L for being without those sums during the extended resolution period.

The Ombudsman's reasoning

Under the Consumer Rights Act 2015, Northridge Finance as supplier is responsible for the car being of satisfactory quality at point of supply. It is undisputed the car was not of satisfactory quality. When a consumer rejects goods, a business may make a deduction for use under the CRA. The ombudsman found Northridge Finance's tiered mileage deduction approach (25 pence per mile before complaint, 15 pence per mile after) to be fair and reasonable, recognising both Mr L's use of the vehicle and the impaired nature of that use due to faults. However, interest should be added to refunded amounts to compensate Mr L for being without those sums during the complaint resolution period.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website