Upheld: Goods and services under S75 complaint against Oodle Financial Services Limited (trading as Oodle Car Finance)

Decision detail

Summary

Mr O purchased a used 2016 car under a hire purchase agreement with Oodle Car Finance in January 2025 for £11,499. In April 2025, he reported issues with the car, and subsequent inspections revealed oil/coolant cross-contamination and head gasket failure. While two earlier independent inspections suggested the defects were not present at sale, Mr O's September 2025 inspection and supporting diagnostic reports indicated the faults were developing at point of sale, evidenced by long-term leakage and the minimal mileage (6,300 miles) driven since purchase. The ombudsman upheld the complaint, finding the car was not of satisfactory quality, and ordered Oodle Car Finance to end the agreement, collect the car, refund the advance payment and subsequent monthly payments from June 2025 onwards, reimburse costs of £563.30, pay £250 compensation, and remove adverse credit file information.

The Ombudsman's reasoning

The ombudsman applied the Consumer Rights Act 2015 standard of satisfactory quality, considering the car's age (8+ years), mileage (56,556 miles at supply), and price (£11,499). On balance of probabilities, the evidence from Mr O's September 2025 inspection, supported by diagnostic reports showing oil/coolant cross-contamination, head gasket breach, and long-term coolant leakage, was more persuasive than the earlier inspections. The short mileage driven since sale (6,300 miles) and physical evidence of long-term deterioration indicated the faults were present or developing at point of sale, not caused by Mr O's use. The ombudsman found it fair and reasonable to allow rejection of the car while permitting Oodle Car Finance to retain payments for the period of use (January to June 2025).

How this compares

Source

Read the original decision on the Financial Ombudsman Service website