Upheld: irresponsible lending / supply of goods not of satisfactory quality complaint against N.I.I.B. Group Limited trading as Northridge Finance Limited
Financial Ombudsman decision DRN-6372147 of 2026-05-29T00:00:00+00:00. irresponsible lending / supply of goods not of satisfactory quality complaint against N.I.I.B. Group Limited trading as Northridge Finance Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6372147 |
|---|---|
| Decision date | 2026-05-29T00:00:00+00:00 |
| Firm | N.I.I.B. Group Limited trading as Northridge Finance Limited |
| Product | hire purchase agreement |
| Claim type | irresponsible lending / supply of goods not of satisfactory quality |
| Outcome | Upheld |
| Remedy | NF must: (1) take back the car without charging for collection; (2) end the finance agreement with no liability for rentals after collection and no adverse credit file information; (3) refund the deposit of £500; (4) pay 8% simple yearly interest on the refund from the date of payment to settlement; (5) pay £300 compensation for distress and inconvenience. Mr W must pay rentals up to the point of settlement for his continued use of the car. |
Summary
Mr W purchased a second-hand car via hire purchase from Northridge Finance Limited on 18 June 2025. Within the first few days, he reported a steering issue where the car pulled to one side. The dealer attempted repairs at least twice, including wheel alignment and suspension work, but the steering problem persisted. An engineer's report dated 2 March 2026 confirmed the wheel alignment remained out of tolerance. The ombudsman found the steering/suspension issue was present at the point of supply and made the car not of satisfactory quality under the Consumer Rights Act 2015. Mr W was entitled to reject the car after the repair attempts failed. NF was directed to take back the car, end the agreement with no adverse credit information, refund the £500 deposit with interest, and pay £300 compensation.
The Ombudsman's reasoning
The ombudsman applied the Consumer Rights Act 2015, which requires goods to be of satisfactory quality. For a second-hand car of this age, mileage, and price, a reasonable person would expect a reasonably elevated standard of quality, particularly in the early stages. The steering/suspension issue was reported within the first 30 days, indicating it was present at the point of supply. Despite two repair attempts by the dealer, the issue persists as evidenced by the engineer's report and diagnostic screens. The issue is not general wear and tear but a significant safety concern that makes the car not of satisfactory quality. Under consumer law, Mr W has the right to reject the car after a repair attempt has failed.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| N.I.I.B. Group Limited trading as Northridge Finance Limited, all decisions | 1 | 100% |
Source
Read the original decision on the Financial Ombudsman Service website