Upheld: irresponsible lending / goods not of satisfactory quality complaint against Santander Consumer (UK) plc, trading as Santander Consumer Finance
Financial Ombudsman decision DRN-6315673 of 2026-05-21T00:00:00+00:00. irresponsible lending / goods not of satisfactory quality complaint against Santander Consumer (UK) plc, trading as Santander Consumer Finance. Outcome: Upheld.
Decision detail
| Reference | DRN-6315673 |
|---|---|
| Decision date | 2026-05-21T00:00:00+00:00 |
| Firm | Santander Consumer (UK) plc, trading as Santander Consumer Finance |
| Product | conditional sale agreement (car finance) |
| Claim type | irresponsible lending / goods not of satisfactory quality |
| Outcome | Upheld |
| Remedy | 1. End the conditional sale agreement and arrange car collection at no cost to Miss S. 2. Refund the £3,000 advance payment. 3. Refund monthly payments for 9-11 July 2025 and from 4 November 2025 until car collection (or waive if unpaid). 4. Pay simple interest at Bank of England base rate plus 1% on refunded amounts from date of each payment to settlement. 5. Remove all adverse credit file information relating to the agreement. 6. Pay £400 compensation for distress and inconvenience. |
Summary
Miss S purchased a used car under a conditional sale agreement with Santander Consumer Finance in May 2025 for £16,078. She complained in November 2025 about issues with the car and requested rejection, but Santander Consumer Finance declined to uphold the complaint citing the dealer's unresponsiveness. The FOS investigator concluded the car had inherent defects making it not of satisfactory quality when supplied. The ombudsman upheld the complaint, ordering Santander Consumer Finance to end the agreement, collect the car, refund the £3,000 deposit and relevant monthly payments with interest, remove adverse credit information, and pay £400 compensation. The ombudsman rejected Miss S's request for reimbursement of £4,027.35 in hire car costs, finding the refunded monthly payments provided adequate compensation for loss of use.
The Ombudsman's reasoning
The ombudsman agreed with the FOS investigator that the car was not of satisfactory quality when supplied, considering factors such as the car's age (two years), mileage (27,566 miles), price (£16,078), and the durability requirement. The ombudsman found it was fair and reasonable for Miss S to reject the car and for Santander Consumer Finance to end the agreement and collect the car at no cost. While the ombudsman acknowledged Miss S's hire car costs and financial difficulty, it determined that the refund of monthly payments for periods when the car was unusable (9-11 July 2025 and from 4 November 2025) provided fair compensation for loss of use, and that reimbursement of hire car costs would not be fair or reasonable. The ombudsman also found it unfair that Santander Consumer Finance did not uphold the complaint due to dealer unresponsiveness.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Santander Consumer (UK) plc, trading as Santander Consumer Finance, all decisions | 7 | 43% |
Source
Read the original decision on the Financial Ombudsman Service website