Upheld: unfair charges / end of contract charges complaint against Mercedes-Benz Financial Services UK Limited

Decision detail

Summary

Miss S complained about end of contract charges applied by MBFS when she voluntarily terminated her car finance agreement and returned the vehicle in September 2025. MBFS initially charged £988 for damage across six areas, but removed three charges following Miss S' complaint. Miss S accepted charges for bumper damage but disputed a £283 charge for windscreen damage, providing photographic evidence showing no visible damage. The ombudsman examined the evidence and found MBFS had not provided sufficient persuasive photographic evidence of the alleged windscreen damage. Applying the Vehicle Return Standards and BVRLA fair wear and tear guidelines, the ombudsman upheld the complaint and directed MBFS to remove the windscreen damage charge from the invoice.

The Ombudsman's reasoning

The ombudsman applied the Vehicle Return Standards signed by Miss S and the industry-standard BVRLA fair wear and tear guidelines to assess whether the windscreen damage charge was fair and reasonable. The VRS specified that windscreen chips less than 5mm are acceptable if they do not obscure the driver's vision (maximum 2 chips), and BVRLA guidance states damage in excess of 10mm in the driver's line of vision or 40mm elsewhere in the wiper blade area is unacceptable. After carefully examining the photographic evidence provided by MBFS, the ombudsman found insufficient persuasive evidence of the alleged windscreen damage and could not see the damage that MBFS claimed was present. In the absence of significantly clearer evidence, the ombudsman determined the windscreen charge should not apply.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website