Upheld: goods not of satisfactory quality; breach of Consumer Rights Act complaint against Close Brothers Limited, trading as Close Brothers Motor Finance

Decision detail

Summary

Mr S purchased a used car (6+ years old, 129,000 miles, £15,980) under a conditional sale agreement with Close Brothers Motor Finance in June 2025. The car developed major faults within three weeks and was off the road from July 2025. Although Close Brothers Motor Finance partially upheld the complaint and refunded two monthly payments, Mr S was dissatisfied. An FOS investigator found the car was not of satisfactory quality and recommended full rejection. The ombudsman upheld this recommendation, ordering Close Brothers Motor Finance to end the agreement, collect the car, refund the £7,000 deposit and all monthly payments from July 2025, reimburse expenses including inspection and insurance costs, pay £350 compensation, and remove adverse credit information.

The Ombudsman's reasoning

The ombudsman found that the car was not of satisfactory quality at the point of supply, considering its age (over 6 years), mileage (129,000 miles), price (£15,980), and durability requirements. The major faults developing within three weeks and repair costs significantly exceeding the car's value demonstrated the car failed to meet satisfactory quality standards. While Mr S and his wife requested a retention-based outcome with price reduction, the ombudsman determined full rejection was the fair and reasonable remedy, as repair costs were disproportionate to the car's value.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website