Upheld: irresponsible lending / satisfactory quality of goods complaint against CA Auto Finance UK Limited
Financial Ombudsman decision DRN-6297335 of 2026-04-21T00:00:00+00:00. irresponsible lending / satisfactory quality of goods complaint against CA Auto Finance UK Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6297335 |
|---|---|
| Decision date | 2026-04-21T00:00:00+00:00 |
| Firm | CA Auto Finance UK Limited |
| Product | car finance agreement |
| Claim type | irresponsible lending / satisfactory quality of goods |
| Outcome | Upheld |
| Remedy | 1. End finance agreement and arrange car collection at no cost to Mrs C. 2. Refund monthly payments made from October 2025 onwards with 8% simple annual interest. 3. Reimburse £624 diagnostic costs with 8% simple annual interest. 4. Pay £300 compensation for distress and inconvenience. 5. Remove any adverse credit file information relating to the agreement. |
Summary
Mrs C purchased a used car through CA Auto Finance in February 2024 for £14,990, including a service plan and warranty. The car's timing chain snapped in October 2025 after approximately 21,000 miles of fault-free driving. Two independent expert inspections and an urgent safety recall regarding camshaft chain issues indicated the defect was present at supply. The ombudsman upheld Mrs C's complaint, finding the car lacked satisfactory durability, and ordered CA Auto Finance to end the agreement, refund payments from October 2025 onwards, reimburse diagnostic costs, pay £300 compensation, and correct the credit file.
The Ombudsman's reasoning
The ombudsman found this a finely balanced complaint but concluded that the car was not as durable as reasonably expected. Although Mrs C had driven the car for over 21,000 miles without fault, the combination of factors was decisive: CA Auto Finance provided credit for a service plan and warranty, the car received an urgent safety recall about camshaft chain issues, both inspection reports identified oil condition and sludge as contributing factors, and the December report suggested the defect would not have been present at purchase. The ombudsman determined it was more likely than not that the car lacked the durability required for satisfactory quality.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| CA Auto Finance UK Limited, all decisions | 3 | 67% |
Source
Read the original decision on the Financial Ombudsman Service website