Not upheld: Goods and services under S75 complaint against Black Horse Limited

Decision detail

Summary

Ms C complained that a car acquired under a hire purchase agreement with Black Horse Limited in July 2020 was not of satisfactory quality, citing ongoing faults including low oil pressure and complete engine failure in February 2025, despite regular maintenance. BHL and the FOS Investigator did not uphold the complaint, citing insufficient evidence of a pre-existing fault. The ombudsman upheld this decision, finding that while Ms C experienced engine failure, no independent engineer's report or diagnostic evidence demonstrated the failure was due to a fault present or developing at the point of supply rather than normal wear and tear after 13 years and over 100,000 miles. The ombudsman noted Ms C had successfully used the vehicle for four years and covered over 40,000 miles, and the vehicle had passed its MOT prior to purchase. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the Consumer Rights Act 2015, which implies that goods supplied under a hire purchase agreement must be of satisfactory quality at the point of supply. For a car, satisfactory quality is assessed considering age, mileage, and price paid. The ombudsman found that the low oil level in October 2020 was routine maintenance, not evidence of a fault. The routine maintenance invoices and MOT pass demonstrated the vehicle was roadworthy at supply. Critically, no independent engineer's report or diagnostic evidence was provided to establish that the engine failure in February 2025 resulted from a pre-existing fault rather than normal wear and tear after 13 years and over 100,000 miles. The ombudsman concluded Ms C had made substantial use of the vehicle (40,000+ miles over four years), indicating it was fit for purpose at supply.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website