Upheld: irresponsible lending and breach of Consumer Rights Act 2015 (product quality) complaint against Go Car Credit Limited
Financial Ombudsman decision DRN-6324845 of 2026-06-03T00:00:00+00:00. irresponsible lending and breach of Consumer Rights Act 2015 (product quality) complaint against Go Car Credit Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6324845 |
|---|---|
| Decision date | 2026-06-03T00:00:00+00:00 |
| Firm | Go Car Credit Limited |
| Product | hire purchase agreement |
| Claim type | irresponsible lending and breach of Consumer Rights Act 2015 (product quality) |
| Outcome | Upheld |
| Remedy | GCC must: (1) ensure Mrs C and Mr D are not liable for monthly payments after 11 August 2025 (car collection date) and refund any payments made after this date; (2) pay £300 compensation for distress and inconvenience within 28 days (plus 8% simple yearly interest if paid late); (3) calculate fair usage charges at £75 per month from supply to collection and deduct from total amount owed; (4) if Mrs C and Mr D overpaid, refund the surplus with 8% interest and remove adverse credit file entries; (5) if a balance remains, arrange an affordable repayment plan with forbearance and remove adverse entries when fully repaid; (6) not reimburse unauthorised sensor repair costs from November 2024 as GCC was not given opportunity to investigate. |
Summary
Mrs C and Mr D complained that GCC irresponsibly approved a hire purchase agreement for £4,845 over 60 months with £159.35 monthly payments in September 2024, and that the supplied car was not of satisfactory quality due to diesel particulate filter faults. GCC used the consumers' declared income of £2,858 rather than verified income of £2,445, and ignored evidence of existing arrears and defaults on their credit file. Using verified figures and GCC's own £300 buffer, the consumers had negative disposable income and could not sustainably afford the payments. The car developed faults within six months, implying they were present at supply, and GCC unreasonably requested proof from the consumers rather than arranging an independent inspection. The ombudsman upheld the complaint, requiring GCC to end the agreement with fair usage charges capped at £75 per month, pay £300 compensation, and remove adverse credit file entries.
The Ombudsman's reasoning
GCC completed reasonable and proportionate checks but failed to make a fair lending decision. Although the checks themselves were adequate, GCC used the declared income (£2,858) rather than the verified income (£2,445) in their affordability calculations. Using verified income and the credit file evidence showing existing arrears and defaults, Mrs C and Mr D had only £203 disposable income per month. After applying GCC's own £300 buffer, they had negative disposable income and could not sustainably afford the £159.35 monthly payment. Additionally, the car was not of satisfactory quality as faults occurred within six months of supply, and under the Consumer Rights Act 2015, this implies the faults were present or developing at supply. GCC unreasonably asked Mrs C and Mr D to provide evidence rather than arranging an independent inspection.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Go Car Credit Limited, all decisions | 130 | 30% |
Source
Read the original decision on the Financial Ombudsman Service website