Upheld: unsatisfactory quality of goods / breach of Consumer Rights Act 2015 complaint against BMW FINANCIAL SERVICES (GB) LIMITED
Financial Ombudsman decision DRN-6295549 of 2026-05-22T00:00:00+00:00. unsatisfactory quality of goods / breach of Consumer Rights Act 2015 complaint against BMW FINANCIAL SERVICES (GB) LIMITED. Outcome: Upheld.
Decision detail
| Reference | DRN-6295549 |
|---|---|
| Decision date | 2026-05-22T00:00:00+00:00 |
| Firm | BMW FINANCIAL SERVICES (GB) LIMITED |
| Product | hire purchase agreement |
| Claim type | unsatisfactory quality of goods / breach of Consumer Rights Act 2015 |
| Outcome | Upheld |
| Remedy | BMWFS must: (1) End the hire purchase agreement with nothing further for Mrs B to pay; (2) Refund Mrs B's deposit; (3) Refund £2,880 for independent inspection report costs; (4) Refund £282 for petrol cost differential (November 2025 to January 2026); (5) Refund costs of boots and sunglasses lost in fire upon production of evidence; (6) Pay simple interest on all refunds at Bank of England base rate plus 1% from date paid until settlement; (7) Update Mrs B's credit file to remove adverse data; (8) Pay £500 for distress and inconvenience; (9) Collect courtesy car once agreement ends. |
Summary
Mrs B purchased a used car via hire purchase from BMWFS in July 2025. In November 2025, four months later, the car caught fire due to an electrical fault in the engine. BMWFS delayed their inspection multiple times, prompting Mrs B to commission an independent report which confirmed the electrical fault. BMWFS's own report was inconclusive and did not support their position that the car was of satisfactory quality. The ombudsman upheld the complaint, finding that under the Consumer Rights Act 2015, the fault was presumed to have been present at sale since it occurred within six months, and BMWFS failed to rebut this presumption. Mrs B was entitled to reject the car and receive a full refund of her deposit, plus refunds for the independent report, petrol costs, lost personal items, interest, and £500 compensation for distress and inconvenience.
The Ombudsman's reasoning
The ombudsman applied the Consumer Rights Act 2015, which requires goods to be of satisfactory quality and implies that faults presenting within six months are presumed to have been present at point of sale unless the supplier proves otherwise. The fire occurred four months after supply, triggering this presumption. Although BMWFS's report was inconclusive, it provided no proof that the fault was not present at sale. The fire brigade and independent engineer reports both identified electrical faults as the cause. BMWFS failed to rebut the presumption and therefore failed to prove the car was of satisfactory quality. Rejection was the only fair outcome. The ombudsman also found the independent report necessary and reasonable given BMWFS's delays and inconclusive findings.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| BMW FINANCIAL SERVICES (GB) LIMITED, all decisions | 1,453 | 46% |
Source
Read the original decision on the Financial Ombudsman Service website