Partially upheld: satisfactory quality of goods; delayed complaint response complaint against Volkswagen Financial Services (UK) Limited trading as Skoda Financial Services

Decision detail

Summary

Mr G purchased a used car via hire purchase agreement with VWFS in February 2025 and reported a gearbox selector lever fault within one month. He also replaced three tyres in May 2025 and sought to reject the car and recover all payments. VWFS upheld the gearbox complaint but offered repair as remedy, and rejected the tyre claim as wear and tear. The ombudsman found the gearbox fault was present or developing at supply but upheld VWFS's repair remedy as fair under consumer credit law, as one repair opportunity must be given before rejection is permitted. The tyre complaint was rejected due to insufficient evidence of pre-supply faults. The ombudsman awarded £200 compensation for delayed complaint response.

The Ombudsman's reasoning

The ombudsman found that VWFS, as the finance provider and supplier of goods under the hire purchase agreement, is responsible for the satisfactory quality of the car. The gearbox selector lever fault was present or developing at point of supply, evidenced by Mr G's complaint within one month. However, legislation allows VWFS one opportunity to repair the fault before rejection is permitted, and this opportunity had not yet been exercised. The ombudsman rejected the tyre claim as insufficient evidence proved the tyres were faulty at supply rather than damaged subsequently. The ombudsman upheld the compensation claim for delayed response.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website