Upheld: faulty goods / breach of satisfactory quality / failure to allow statutory rejection complaint against RCI Financial Services Limited (trading as Nissan Financial Services)
Financial Ombudsman decision DRN-6335465 of 2026-05-07T00:00:00+00:00. faulty goods / breach of satisfactory quality / failure to allow statutory rejection complaint against RCI Financial Services Limited (trading as Nissan Financial Services). Outcome: Upheld.
Decision detail
| Reference | DRN-6335465 |
|---|---|
| Decision date | 2026-05-07T00:00:00+00:00 |
| Firm | RCI Financial Services Limited (trading as Nissan Financial Services) |
| Product | hire purchase agreement / car finance |
| Claim type | faulty goods / breach of satisfactory quality / failure to allow statutory rejection |
| Outcome | Upheld |
| Remedy | End finance agreement with no liability for future rentals; collect car at no cost to Mrs T; refund deposit/part exchange of £7,535; refund all monthly instalments from start of agreement to settlement date; pay simple interest at Bank of England base rate + 1% on all refunded amounts; pay £200 compensation for distress and inconvenience; remove adverse credit file information. |
Summary
Mrs T purchased a new car financed through a hire purchase agreement with RCI Financial Services Limited on 19 November 2025. The car broke down on 12 December 2025 with a loss of power fault, and Mrs T requested rejection on 13 December 2025, within the statutory 30-day period. The dealership repaired the car instead, and RCI was unresponsive to Mrs T's complaint. The ombudsman upheld the complaint, finding the car was of unsatisfactory quality and Mrs T was entitled to reject it under the Consumer Rights Act (2015). RCI was ordered to end the finance agreement, refund the deposit and all instalments with interest, collect the car at no cost, and pay £200 compensation.
The Ombudsman's reasoning
The car was brand new and therefore a reasonable person would expect it to be fault-free. The undisputed fault (loss of power) rendered the car of unsatisfactory quality in breach of the Consumer Rights Act (2015). Mrs T exercised her statutory right to reject the car within 30 days, which does not provide the business with an opportunity to repair. RCI should have allowed the rejection rather than arranging repairs. Mrs T's decision to stop using the car was reasonable given the safety concerns, and she had minimal use of the vehicle.
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