Upheld: unsatisfactory quality of goods supplied under hire purchase agreement complaint against N.I.I.B. Group Limited trading as Northridge Finance

Decision detail

Summary

Mr K purchased a five-year-old used car with 78,657 miles via hire purchase from Northridge Finance in January 2025 for approximately £12,222. Within a month, he reported severe vibration above 60 mph. The supply dealership conducted inspections and repairs but found no issues, while an independent engineer's report later confirmed an abnormal vibration likely related to transmission or final drive problems. The ombudsman found the car was of unsatisfactory quality at point of supply and upheld Mr K's complaint, directing NF to end the agreement, collect the car, refund the advance payment of £1,075 plus taxi costs and £200 compensation, and remove adverse credit file information.

The Ombudsman's reasoning

The ombudsman found that while the car was used and some wear and tear was expected, a reasonable person would not expect significant faults such as the vibration issue to develop so soon after supply given the car's age, mileage, and price. The vibration was reported less than a month after supply, indicating it was likely present or developing at point of supply. The independent engineer's report supported this conclusion. Although the supply dealership inspections found no fault, Mr K had given multiple opportunities to repair which were unsuccessful. The ombudsman concluded NF failed to meet their responsibility to supply goods of satisfactory quality and that Mr K was entitled to reject the car under the Consumer Rights Act 2015.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website