Upheld: unsatisfactory quality of goods; breach of Consumer Rights Act 2015 complaint against Volvo Car Financial Services UK Limited
Financial Ombudsman decision DRN-6349038 of 2026-05-14T00:00:00+00:00. unsatisfactory quality of goods; breach of Consumer Rights Act 2015 complaint against Volvo Car Financial Services UK Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6349038 |
|---|---|
| Decision date | 2026-05-14T00:00:00+00:00 |
| Firm | Volvo Car Financial Services UK Limited |
| Product | conditional sale agreement (car finance) |
| Claim type | unsatisfactory quality of goods; breach of Consumer Rights Act 2015 |
| Outcome | Upheld |
| Remedy | End the conditional sale agreement with no liability for payments after collection; collect car at no cost to Mr G; remove adverse credit file entries; refund deposit; refund all payments from 1 February 2026 to collection date; reimburse £1,490 for upgrades and costs; apply simple yearly interest at Bank of England Base Rate plus 1% on all refunds from date of payment; pay additional £250 compensation for distress and inconvenience within 28 days; if debt remains after direct debit indemnity deduction, arrange affordable repayment plan and remove adverse credit entries upon full repayment. |
Summary
Mr G purchased a used car through a conditional sale agreement with Volvo in July 2025 for £37,199. The car developed an oil leak, brake issues, and a persistent HUD fault shortly after supply. While the dealership fixed the oil and brake issues in September and December 2025, the HUD fault remained unresolved. Volvo arranged an independent engineer inspection but deliberately instructed them only to investigate the already-resolved oil and brake issues, not the ongoing HUD problem. An independent expert report confirmed the HUD fault was not present on comparable vehicles and represented unsatisfactory quality. The ombudsman upheld Mr G's complaint, finding the single chance of repair had been exhausted and Mr G had the right to reject the car. Volvo was ordered to end the agreement, refund payments from 1 February 2026 onwards, reimburse £1,490 in costs, and pay £250 additional compensation.
The Ombudsman's reasoning
The ombudsman applied the Consumer Rights Act 2015, which requires goods to be of satisfactory quality. The independent expert report provided reliable evidence that the HUD fault was not a normal characteristic and made the car unsatisfactory. The single chance of repair provision had been exhausted through two dealership repair attempts (10 September and 17 December 2025), entitling Mr G to reject the car. Volvo's independent engineer report was unreliable as it did not investigate the HUD issue despite Volvo's knowledge of the complaint.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Volvo Car Financial Services UK Limited, all decisions | 59 | 42% |
Source
Read the original decision on the Financial Ombudsman Service website