Upheld: irresponsible lending / supply of goods not of satisfactory quality complaint against Black Horse Ltd
Financial Ombudsman decision DRN-6345603 of 2026-05-31T00:00:00+00:00. irresponsible lending / supply of goods not of satisfactory quality complaint against Black Horse Ltd. Outcome: Upheld.
Decision detail
| Reference | DRN-6345603 |
|---|---|
| Decision date | 2026-05-31T00:00:00+00:00 |
| Firm | Black Horse Ltd |
| Product | hire purchase agreement |
| Claim type | irresponsible lending / supply of goods not of satisfactory quality |
| Outcome | Upheld |
| Remedy | Black Horse Ltd directed to: (1) end the finance agreement with no liability for rentals after collection; (2) take vehicle back without collection charges; (3) refund deposit of £2,275; (4) refund all monthly rentals from 23 December 2025 to settlement date; (5) reimburse £102 diagnostic costs and £906 for engine stripping and storage; (6) pay simple interest at Bank of England base rate + 1% on all refunded amounts from date of payment to settlement; (7) pay £250 compensation for distress and inconvenience; (8) remove any adverse credit file information relating to the agreement. |
Summary
Miss C purchased a five-year-old used car via hire purchase from Black Horse Ltd on 14 December 2024 for £13,199. The car was supplied with incomplete service history. In September 2025, Miss C noticed excessive oil consumption, and in December 2025 the car suffered catastrophic engine failure. An independent inspection in March 2026 confirmed the failure was caused by timing belt deterioration leading to loss of engine lubrication, and the expert concluded this fault was developing at the point of supply. The ombudsman upheld the complaint, finding the vehicle was not of satisfactory quality, and directed Black Horse to reject the vehicle, refund all payments and deposits from December 2025 onwards, reimburse out-of-pocket expenses, pay £250 compensation, and remove adverse credit information.
The Ombudsman's reasoning
Although the complaint was raised more than six months after supply (placing burden of proof on Miss C), the independent expert evidence clearly established that a fault existed and was developing at the point of supply. The expert's opinion that the timing belt deterioration and engine wear would have been developing at sale, combined with the vehicle's incomplete service history and the advertising promise of quality testing, meant the vehicle was not of satisfactory quality. The age and mileage of the used car, while relevant, do not negate the supplier's obligations under the Consumer Rights Act 2015.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Black Horse Ltd, all decisions | 1 | 100% |
Source
Read the original decision on the Financial Ombudsman Service website