Upheld: irresponsible lending / goods not of satisfactory quality complaint against Honda Finance Europe plc (trading as Honda Financial Services)
Financial Ombudsman decision DRN-6300829 of 2026-05-06T00:00:00+00:00. irresponsible lending / goods not of satisfactory quality complaint against Honda Finance Europe plc (trading as Honda Financial Services). Outcome: Upheld.
Decision detail
| Reference | DRN-6300829 |
|---|---|
| Decision date | 2026-05-06T00:00:00+00:00 |
| Firm | Honda Finance Europe plc (trading as Honda Financial Services) |
| Product | hire purchase agreement |
| Claim type | irresponsible lending / goods not of satisfactory quality |
| Outcome | Upheld |
| Remedy | Honda Financial Services must: (1) End the hire purchase agreement and collect the car at no cost to Mrs Y except for damage beyond fair wear and tear (excluding the missing parcel shelf); (2) Refund the £3,699 deposit with 8% simple annual interest from date of payment to settlement; (3) Remove any adverse credit file information relating to the agreement; (4) Pay £300 compensation for distress and inconvenience. |
Summary
Mrs Y purchased a used car under a hire purchase agreement with Honda Financial Services in June 2024 for £10,290, paying a £3,699 deposit. In March 2025, she complained about multiple issues with the car including bumper damage, scratches, and a missing parcel shelf, and requested rejection. Honda Financial Services rejected her rejection request but upheld her complaint about repair delays. The ombudsman found the car was not of satisfactory quality when supplied and upheld Mrs Y's complaint, ordering Honda Financial Services to end the agreement, collect the car, refund the deposit with interest, pay £300 compensation, and remove adverse credit file information, while retaining the monthly payments as fair compensation for use of the vehicle.
The Ombudsman's reasoning
The ombudsman agreed with the investigator that the car was not of satisfactory quality when supplied due to the multiple faults present. The ombudsman found it fair and reasonable for Mrs Y to reject the car and be returned to the position she would have been in had the car not been supplied. The ombudsman determined that Honda Financial Services should keep the monthly payments as compensation for the use Mrs Y had from the car (16,941 miles driven), but should refund the deposit with interest and pay compensation for distress and inconvenience.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Honda Finance Europe plc (trading as Honda Financial Services), all decisions | 1 | 100% |
Source
Read the original decision on the Financial Ombudsman Service website