Not upheld: end of contract damage charges and fair wear and tear assessment complaint against STARTLINE MOTOR FINANCE LIMITED

Decision detail

Summary

Mr T complained about end of contract charges imposed by Startline Motor Finance after he voluntarily terminated a hire purchase agreement for a used car. Startline charged £1,145.86 for damage to the rear bumper, which an independent inspection identified as a significant crack. Mr T disputed the charges, arguing the repair costs were excessive and that he was not clearly informed about the full scope of damage. The ombudsman found that the bumper damage exceeded fair wear and tear for a vehicle of that age and mileage, the repair estimate was reasonable, and Startline properly relied on the independent inspection. Although communication could have been clearer, the ombudsman found no evidence of unfair or misleading conduct that would warrant compensation, and the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied BVRLA industry guidance while also considering that the car was not new when supplied. A significant crack in the bumper was deemed to exceed fair wear and tear for a vehicle of that age and mileage, warranting a charge. The repair estimate was considered reasonable and within a normal range. While communication about the charges may not have been entirely clear, this did not cause Mr T financial loss beyond the amount fairly sought for the bumper damage itself.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website