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

Decision detail

Summary

Miss L purchased a used car through a hire purchase agreement with Black Horse Limited in December 2024 for £11,099. The car was 6 years 4 months old with 39,505 miles and no full service history. In July 2025, after 8 months of ownership and approximately 3,000 miles driven, the car suffered serious faults including cambelt deterioration, engine ECU failure, and battery issues, requiring approximately £4,000 in repairs. Miss L complained that the car was not of satisfactory quality at the point of supply and sought reimbursement for repair costs, consequential losses, and compensation. The ombudsman found insufficient evidence that the faults existed or were developing at the point of supply, noting that the car had passed its MOT shortly before supply and garage S could only 'suspect' rather than confirm when the faults originated. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the Consumer Rights Act 2015 standard of satisfactory quality, which requires goods to meet the standard a reasonable person would consider satisfactory, taking into account the description, price, and relevant circumstances including age and mileage. While the car was over 6 years old with nearly 40,000 miles and no full service history, a reasonable person would still expect it to be free from major defects and provide trouble-free motoring for some time and distance. However, the burden of proof lay with Miss L to demonstrate the faults existed at the point of supply. The ombudsman found that garage S's opinion only 'suspects' the faults may have been developing and provides no definitive evidence of when they originated. The car's recent MOT pass with no relevant advisories, combined with the lack of diagnostic evidence and the warranty provider's assessment that faults were due to wear and tear, meant there was insufficient evidence to conclude the car was of unsatisfactory quality or lacked reasonable durability at supply. The cambelt replacement at 7 years of age was consistent with garage S's own maintenance expectations for vehicles of that age.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website