Upheld: Goods and services under S75 complaint against STARTLINE MOTOR FINANCE LIMITED
Financial Ombudsman decision DRN-6314970 of 2026-06-18T00:00:00+00:00. Goods and services under S75 complaint against STARTLINE MOTOR FINANCE LIMITED. Outcome: Upheld.
Decision detail
| Reference | DRN-6314970 |
|---|---|
| Decision date | 2026-06-18T00:00:00+00:00 |
| Firm | STARTLINE MOTOR FINANCE LIMITED |
| Product | Motor finance (PCP / HP) |
| Claim type | Goods and services under S75 |
| Outcome | Upheld |
| Remedy | Startline Motor Finance Limited directed to: (1) remove adverse credit file entries relating to the agreement; (2) refund monthly rentals from 19 September 2025 until settlement of agreement; (3) pay simple yearly interest at Bank of England base rate + 1% on refunded amounts from date of payment to date of refund; (4) pay £300 additional compensation for distress and inconvenience. |
Summary
Mrs C purchased a used car under a hire purchase agreement with Startline in March 2025, relying on the advertised full service history. The car broke down in September 2025 with wet timing belt deterioration, which an independent engineer confirmed was present at the point of sale and likely caused by a missed service. Mrs C rejected the vehicle and Startline accepted the rejection, but offered only £100 compensation and retained nine months of rental payments. The ombudsman upheld Mrs C's complaint, finding the car was not of satisfactory quality and there was material misrepresentation regarding service history. Startline was directed to refund all rentals from 19 September 2025 onwards with interest, remove adverse credit entries, and pay an additional £300 compensation for the several months of inconvenience and disruption caused.
The Ombudsman's reasoning
The ombudsman found that the car was not of satisfactory quality due to the wet timing belt deterioration present at point of sale, and that there was a material misrepresentation regarding the full service history. Under the Consumer Rights Act 2015, goods must be of satisfactory quality, and Mrs C was entitled to reject the vehicle. As Mrs C was unable to use the vehicle from 19 September 2025 due to the fault, she should be refunded rentals from that date onwards. The £100 compensation was insufficient given the several months of inconvenience and disruption, warranting an additional £300. Travel and repair costs were not recoverable as they related to separate issues or periods after the vehicle was collected.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| STARTLINE MOTOR FINANCE LIMITED, all decisions | 502 | 50% |
| Goods and services under S75, all decisions | 19,872 | 36% |
| Motor finance (PCP / HP), all decisions | 19,840 | 38% |
Source
Read the original decision on the Financial Ombudsman Service website