Upheld: supply of goods of unsatisfactory quality under hire purchase agreement; failure to respond to complaint within required timeframe complaint against MotoNovo Finance Limited
Financial Ombudsman decision DRN-6358808 of 2026-05-14T00:00:00+00:00. supply of goods of unsatisfactory quality under hire purchase agreement; failure to respond to complaint within required timeframe complaint against MotoNovo Finance Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6358808 |
|---|---|
| Decision date | 2026-05-14T00:00:00+00:00 |
| Firm | MotoNovo Finance Limited |
| Product | hire purchase agreement |
| Claim type | supply of goods of unsatisfactory quality under hire purchase agreement; failure to respond to complaint within required timeframe |
| Outcome | Upheld |
| Remedy | MotoNovo Finance Limited to pay Mr W a further £250 to settle the complaint. (In addition to previously provided remedies: refund of deposit, payment of £3,901.49 for hire car costs, refund of £307.90 of payments made under the agreement, 8% interest on these amounts, and £250 compensation for distress and inconvenience) |
Summary
Mr W purchased a car through a hire purchase agreement with MotoNovo Finance Limited in March 2025, but the vehicle proved to be of unsatisfactory quality with multiple breakdowns. After MotoNovo failed to respond to his complaint within the required eight weeks, Mr W brought the matter to the Financial Ombudsman Service. MotoNovo subsequently agreed to reject the vehicle and provided various remedies including deposit refund, hire car cost reimbursement, and £250 compensation. However, the ombudsman found that Mr W had suffered a residual financial loss of approximately £281.51 plus likely credit card interest charges, and that the distress caused by being without a vehicle for nearly five months warranted an additional £250 payment to fairly resolve the complaint.
The Ombudsman's reasoning
The ombudsman found that while MotoNovo had already provided substantial remedies, the financial loss calculation showed Mr W had incurred a net loss of £281.51 after offsetting hire car costs against additional finance payments he would have made. Additionally, Mr W likely incurred credit card interest charges that exceeded the 8% simple interest already paid. Considering both the quantifiable financial loss and the significant distress and inconvenience caused by being without a vehicle for nearly five months, an additional £250 was deemed fair and reasonable compensation.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| MotoNovo Finance Limited, all decisions | 559 | 45% |
Source
Read the original decision on the Financial Ombudsman Service website