Upheld: irresponsible supply of goods - breach of satisfactory quality term complaint against Mercedes-Benz Financial Services UK Limited

Decision detail

Summary

Miss S purchased a brand-new car for £39,880 under a regulated credit agreement with MBFS in April 2023. In September 2023, she reported an intermittent fault with the infotainment system that made incoming calls sound muffled and underwater. Despite multiple garage visits and a replacement of the MBUX unit in November 2024, the fault persisted. The ombudsman upheld the complaint, finding the car was not of satisfactory quality at supply due to the inherent manufacturing fault. While rejecting the car was deemed unreasonable as it remained usable for transportation, MBFS was ordered to refund 10% of monthly payments from September 2023 onwards plus interest, and pay £450 compensation for distress and inconvenience, particularly given Miss S's work requirement for reliable phone communication while driving.

The Ombudsman's reasoning

Under the Consumer Rights Act 2015, goods supplied must be of satisfactory quality. A reasonable person would expect a brand-new car at £39,880 to be free from defects and usable for a considerable period. The intermittent infotainment fault appearing 5 months after supply constitutes a breach of the satisfactory quality term. Although the car remained usable for its primary function (transportation), the fault was inherent at supply. The repair attempt in November 2024 failed to resolve the issue. Rejection was deemed unreasonable as the car remained functional for transportation despite the defect. A 10% refund of monthly payments from September 2023 onwards was considered fair compensation for impaired use, particularly given Miss S's work requirements for phone communication while driving.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website