Not upheld: Goods and services under S75 complaint against Oodle Financial Services Limited

Decision detail

Summary

Mr B purchased an 8-year-old used car with 107,000 miles under a hire purchase agreement with Oodle Financial Services Limited for £11,393 in January 2024. Approximately 18 months later, after travelling a further 21,000 miles, the car experienced engine failure. Mr B complained that the car was of unsatisfactory quality at the point of supply. An independent engineer's inspection concluded the faults were consistent with wear and tear for a vehicle of that age and mileage, not present at purchase. The ombudsman did not uphold the complaint, finding that the car met the standard of satisfactory quality expected for a used vehicle of its age, mileage, and price, and that the engine failure was a result of normal wear and tear rather than an inherent defect present at supply.

The Ombudsman's reasoning

The ombudsman applied the Consumer Rights Act 2015, which implies that goods supplied under hire purchase must be of satisfactory quality at the point of supply. For used cars, satisfactory quality is assessed considering age, mileage, and price paid. The independent engineer's report was deemed the most persuasive evidence, concluding the faults were wear and tear related and not present at supply. The ombudsman found that a reasonable person would not expect a car of this age and mileage to be free from wear and tear, and that the 20,000 miles travelled without incident after purchase suggested no inherent fault was present at supply. The catastrophic engine failure after 128,000 total miles was consistent with normal durability expectations for a used vehicle.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website