Upheld: supply of goods of unsatisfactory quality under hire purchase agreement complaint against Volkswagen Financial Services (UK) Limited

Decision detail

Summary

Miss S purchased a used car via hire purchase agreement with VWFS in May 2025. Shortly after acquisition, the car developed multiple faults including warning lights, a faulty key/immobiliser, and a damaged wing mirror. A vehicle health check confirmed these issues required urgent attention. VWFS arranged repairs under warranty but Miss S disputed whether this adequately resolved the matter. The ombudsman upheld the complaint, finding the car was not supplied of satisfactory quality given the nature and timing of the faults, and instructed VWFS to pay £380 compensation for distress and inconvenience.

The Ombudsman's reasoning

The ombudsman applied the Consumer Rights Act 2015, which requires suppliers to ensure goods are of satisfactory quality. While the car was used and over three years old, the faults (immobiliser issue, faulty wing mirror, warning lights) presented shortly after acquisition and were likely present or developing at point of supply. These faults were not commensurate with a three-year-old car costing around £40,000. The ombudsman noted VWFS had already accepted the car was not of satisfactory quality in their final response. Although repairs were completed under warranty, compensation for distress and inconvenience was warranted.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website