Not upheld: Goods and services under S75 complaint against Motability Operations Limited

Decision detail

Summary

Mr G complained that a car acquired through a Motability hire agreement in May 2024 was not of satisfactory quality, experiencing multiple ongoing faults shortly after acquisition. Motability acknowledged the problems and offered mechanical termination of the agreement with a refund of the advance payment, £2,000 towards a tech package, and £550 compensation. Mr G rejected this, wanting to keep the car despite its ongoing issues and citing the scheme's less favourable new terms. The ombudsman found the car was indeed not of satisfactory quality at the point of supply but determined Motability's remedy was fair and reasonable, declining to direct the firm to allow Mr G to retain the defective vehicle or provide a specific alternative model.

The Ombudsman's reasoning

The ombudsman found the car was likely not of satisfactory quality at the point of supply because it was not reasonably durable, as problems started very soon after acquisition and continued. Motability's offer of mechanical termination was accepted as fair because Motability is entitled to one chance to repair (which was attempted multiple times) and the termination represents acceptance that the vehicle is unrepairable. The £550 compensation was found to be in keeping with FOS recommendations for similar circumstances. While sympathetic to Mr G's preference to keep the car due to his neurodiversity and the scheme's changed terms, the ombudsman noted that Motability agreements are typically short-term and that keeping a vehicle with ongoing issues and a broken dealership relationship would not be in Mr G's best interests.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website