Upheld: irresponsible lending / goods not of satisfactory quality / breach of Consumer Rights Act complaint against Hyundai Capital UK Limited, trading as Kia Finance
Financial Ombudsman decision DRN-6356264 of 2026-05-20T00:00:00+00:00. irresponsible lending / goods not of satisfactory quality / breach of Consumer Rights Act complaint against Hyundai Capital UK Limited, trading as Kia Finance. Outcome: Upheld.
Decision detail
| Reference | DRN-6356264 |
|---|---|
| Decision date | 2026-05-20T00:00:00+00:00 |
| Firm | Hyundai Capital UK Limited, trading as Kia Finance |
| Product | conditional sale agreement (car finance) |
| Claim type | irresponsible lending / goods not of satisfactory quality / breach of Consumer Rights Act |
| Outcome | Upheld |
| Remedy | 1. End conditional sale agreement and collect car at no cost to Miss G. 2. Refund advance payment of £3,955 with 8% simple interest from date of payment. 3. Reimburse diagnostic check cost of £40 with 8% simple interest from date of payment. 4. Pay £250 compensation for distress and inconvenience. 5. Remove any adverse credit file information relating to the agreement. 6. Monthly payments already made retained by Kia Finance as payment for use of the car. |
Summary
Miss G purchased a used car under a conditional sale agreement with Kia Finance in June 2025 for £19,966. She reported a knocking noise immediately after supply, which the dealer repaired by replacing suspension components. Despite repairs and a passing MOT test, Miss G complained in September 2025 and a diagnostic check in November 2025 identified ongoing audible creaking/knocking noises. The ombudsman found the car was not of satisfactory quality at the point of supply and upheld Miss G's complaint, ordering Kia Finance to end the agreement, collect the car, refund the advance payment with interest, reimburse diagnostic costs, pay £250 compensation, and remove adverse credit file information.
The Ombudsman's reasoning
The ombudsman found that on the balance of probabilities, there was a fault with the car at the point of supply that made it not of satisfactory quality. Although the dealer's road test and two independent inspections found no knocking noise, the car had been driven only 3,427 miles between repairs and had required two repairs. The November 2025 diagnostic check identified an audible creaking/knocking noise, which corroborated Miss G's original complaint. Given the repair history, limited mileage, and the diagnostic evidence of ongoing issues, the ombudsman concluded it was more likely than not that a fault continued to exist, making rejection a fair and reasonable remedy.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Hyundai Capital UK Limited, trading as Kia Finance, all decisions | 1 | 100% |
Source
Read the original decision on the Financial Ombudsman Service website