Upheld: breach of contract - unsatisfactory quality of goods and services; failure to perform services with reasonable care and skill complaint against Mitsubishi HC Capital UK PLC trading as Novuna Personal Finance

Decision detail

Summary

Mr A purchased fitted bedroom furniture for £6,000 via a fixed sum loan from Novuna in July 2022. The furniture, supplied by retailer H, had missing parts and required repairs. After H's repair attempts in early 2023, significant defects remained including loose drawers, broken hinges, and damaged doors. A third party inspection in October 2023 quoted £830 for repairs. Novuna rejected Mr A's Section 75 claim, agreeing with H's refusal to repair. The ombudsman upheld the complaint, finding H had breached the contract by failing to supply goods of satisfactory quality. Rather than ordering a full refund, the ombudsman required Novuna to either pay £840 as a price reduction or fund repairs via contractor quotes, plus £315 in compensation for consequential losses and claim handling delays.

The Ombudsman's reasoning

The ombudsman found that H breached the contract by failing to supply goods of satisfactory quality and failing to perform services with reasonable care and skill under the Consumer Rights Act 2015. Although H attempted repairs, the furniture remained defective as evidenced by the third party quote and Mr A's photographic evidence. The ombudsman rejected Mr A's request for full refund as disproportionate, finding that repair for £840 was a reasonable and proportionate remedy. The ombudsman found Mr A acted reasonably in engaging a third party to make the furniture safe, and that this did not forfeit his right to claim. The ombudsman rejected claims for lost earnings as lacking sufficient evidence and being unforeseeable, but upheld the claim for breach of contract.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website