Upheld: irresponsible lending / supply of goods not of satisfactory quality complaint against RCI Financial Services Limited, trading as Nissan Financial Services
Financial Ombudsman decision DRN-6301888 of 2026-05-22T00:00:00+00:00. irresponsible lending / supply of goods not of satisfactory quality complaint against RCI Financial Services Limited, trading as Nissan Financial Services. Outcome: Upheld.
Decision detail
| Reference | DRN-6301888 |
|---|---|
| Decision date | 2026-05-22T00:00:00+00:00 |
| Firm | RCI Financial Services Limited, trading as Nissan Financial Services |
| Product | hire purchase agreement |
| Claim type | irresponsible lending / supply of goods not of satisfactory quality |
| Outcome | Upheld |
| Remedy | NFS must: (1) end the agreement with nothing further to pay and remove adverse credit file information; (2) collect the car at no cost to Mr T; (3) refund advance payment of £15,680.01; (4) refund £45 for courtesy car hire expenses; (5) pay 8% simple yearly interest on all refunded amounts from date of payment until settlement; (6) pay £150 compensation for distress and inconvenience. |
Summary
Mr T purchased a car through a hire purchase agreement with NFS in August 2023 for £53,491.84. The car developed a persistent brake defect with multiple failed repairs occurring at low mileage (first at under 8,000 miles, second at around 16,000 miles). NFS initially rejected rejection based on the dealership's assertion that debris caused the problem, but technical invoices and manufacturer technical bulletins revealed the actual cause was deformed brake shims. The ombudsman found the car was not of satisfactory quality due to lack of durability and upheld the complaint, requiring NFS to accept rejection, end the agreement, refund the advance payment of £15,680.01 plus £45 in additional expenses, pay 8% interest, and provide £150 compensation.
The Ombudsman's reasoning
The Consumer Rights Act 2015 requires suppliers to ensure goods are of satisfactory quality, including durability. The crucial evidence is the technical notes indicating a known fault communicated by the manufacturer. The repeated failures of brake components at low mileage (first at under 8,000 miles, second at around 16,000 miles), combined with technical bulletins identifying deformed brake shims as the cause, demonstrates the car was not sufficiently durable when supplied. The pattern of failed repairs and the technical bulletin evidence satisfies the ombudsman that an underlying defect existed at the point of supply.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| RCI Financial Services Limited, trading as Nissan Financial Services, all decisions | 4 | 75% |
Source
Read the original decision on the Financial Ombudsman Service website