Upheld: unsatisfactory quality of goods / breach of Consumer Rights Act 2015 complaint against RCI Financial Services Limited trading as Mobilize Financial Services

Decision detail

Summary

Ms O purchased a used car through a hire purchase agreement with RCI in October 2024. The car required an oil leak repair immediately after supply. In February 2025, after only 1,200 miles and four months of use, the car became undrivable due to an oil pressure fault. Although RCI's supplying dealer claimed topping up the oil resolved the issue, the ombudsman found the car was not of satisfactory quality when supplied and that the fault was not due to wear and tear. Under the Consumer Rights Act 2015, Ms O had the right to reject the car after the first repair failed. The ombudsman upheld the complaint and ordered RCI to end the agreement, refund all payments and costs, and pay £500 compensation.

The Ombudsman's reasoning

The ombudsman found that the car was faulty when supplied because an oil leak required repair in October 2024, immediately after supply. The same oil-related fault reappeared in February 2025 after only 1,200 miles, which is inconsistent with normal wear and tear. Although topping up the oil cleared the fault codes, this did not fix the underlying fault. Under the Consumer Rights Act 2015, goods must be of satisfactory quality, and a reasonable person would not expect a car to become undrivable within five months of purchase. The single chance at repair provision applies, and since the first repair failed, Ms O has the right to reject the car. Additionally, RCI failed to repair the car within a reasonable time, taking from February to July 2025 to collect it.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website