Upheld: supply of goods of unsatisfactory quality; failure to implement agreed remedy complaint against RCI Financial Services Limited trading as Nissan Financial Services

Decision detail

Summary

Mrs M purchased a brand-new car via hire purchase agreement with NFS in April 2023. The car developed multiple faults including alternator failure in September 2024 and steering column issues in May 2025, with the alternator failing again in November 2025, leading to the car's return in February 2026. Both parties accepted the car was supplied of unsatisfactory quality. The investigator upheld the complaint and proposed a remedy, which both parties accepted, but NFS failed to implement it. The ombudsman upheld the complaint and instructed NFS to end the agreement, refund the advance payment, reimburse pro rata monthly repayments for periods without use, pay £250 for distress and inconvenience, and remove adverse credit file information.

The Ombudsman's reasoning

The Consumer Rights Act 2015 requires suppliers to ensure goods are of satisfactory quality. A reasonable person would expect a brand-new car to be in excellent condition with no faults and to provide trouble-free motoring for a significant period. Both parties accepted the car was unsatisfactory quality. The primary issue was NFS's failure to implement the agreed remedy despite the investigator's clarification. Rejection of the car is a fair and available remedy under the CRA.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website