Partially upheld: unfair charges; insufficient evidence for charges applied; fair wear and tear dispute complaint against MONEYBARN NO.1 LIMITED
Financial Ombudsman decision DRN-6335624 of 2026-05-11T00:00:00+00:00. unfair charges; insufficient evidence for charges applied; fair wear and tear dispute complaint against MONEYBARN NO.1 LIMITED. Outcome: Partially upheld.
Decision detail
| Reference | DRN-6335624 |
|---|---|
| Decision date | 2026-05-11T00:00:00+00:00 |
| Firm | MONEYBARN NO.1 LIMITED |
| Product | car finance (conditional sale agreement) |
| Claim type | unfair charges; insufficient evidence for charges applied; fair wear and tear dispute |
| Outcome | Partially upheld |
| Remedy | Remove bodywork charges from the balance, leaving Ms C liable for £1,779.49 only. Amend Ms C's credit file to reflect the revised balance. |
Summary
Ms C complained about charges applied by Moneybarn after she voluntarily terminated a car finance agreement in April 2022 following a timing chain failure. Moneybarn initially quoted £0 liability but later sought £2,099.64 in charges for diagnostics, bodywork repairs, and mechanical repairs. The ombudsman partially upheld the complaint, removing unsupported bodywork charges but upholding mechanical repair and diagnostic costs as the timing chain failure exceeded fair wear and tear. Ms C was left liable for £1,779.49 and Moneybarn was ordered to amend her credit file accordingly.
The Ombudsman's reasoning
The ombudsman found that while Ms C relied on the £0 estimate, Moneybarn's information clearly stated the car would be inspected and further charges could apply. The timing chain failure was determined to exceed fair wear and tear for a vehicle of that age and mileage, as it materially affected safety and mechanical reliability. However, the bodywork charges lacked supporting evidence and were therefore removed. The mechanical repair and diagnostic costs were upheld as fair recovery for a serious unrepaired mechanical issue.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| MONEYBARN NO.1 LIMITED, all decisions | 1,419 | 24% |
Source
Read the original decision on the Financial Ombudsman Service website