Not upheld: fairness and reasonableness of end-of-lease damage charges complaint against KINTO UK Limited trading as KINTO One

Decision detail

Summary

Mrs W disputed £415 in end-of-lease damage charges applied by Kinto when she returned a car lease after 36 months, arguing the damage was minor and cosmetic and that the charges should be reduced given she had only used half the permitted mileage. Kinto maintained the charges were valid under BVRLA guidelines and the hire agreement terms. The ombudsman found the independent inspection report with photographs evidenced that the damage exceeded BVRLA thresholds (scratches over 25mm with exposed primer), and that the hire agreement explicitly requires payment for all damage regardless of mileage usage. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that the damage charges were justified because: (1) the hire agreement explicitly requires the customer to pay for all damage; (2) the independent inspection report with photographs evidenced the damage; (3) the damage exceeded BVRLA guidelines thresholds (scratches and scuffs over 25mm and showing primer/bare metal); (4) the charges were in line with BVRLA guidelines and the agreement terms; and (5) the hire agreement does not provide for refunds or discounted repair charges based on low mileage usage. The ombudsman rejected the argument that low mileage should reduce damage charges as the agreement contains no such provision.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website