Not upheld: Goods and services under S75 complaint against N.I.I.B. Group Limited, trading as Northridge Finance

Decision detail

Summary

Miss G purchased a used modified Ford Focus ST-3 under a hire purchase agreement with Northridge Finance on 3 March 2025. The engine failed catastrophically at 37,205 miles on 12 August 2025, requiring replacement. Miss G complained that the car was faulty at the time of sale under the Consumer Rights Act 2015. Two independent expert inspections commissioned by Northridge Finance concluded the fault was not present or developing at the time of sale, attributing the failure to Low-Speed Pre-Ignition likely caused by driver behaviour or maintenance issues rather than an existing defect. The ombudsman upheld the expert findings, finding that while the early failure was unusual, it could be adequately explained without inferring a pre-existing defect, and therefore did not uphold the complaint.

The Ombudsman's reasoning

Although an engine failing at 37,205 miles is prima facie evidence of lack of durability, the ombudsman found this could be adequately explained by Low-Speed Pre-Ignition caused by driver behaviour (accelerating in high gear at low RPM) or incorrect oil type, either of which can occur regardless of prior mechanical defects. The modifications, while increasing risk of LSPI, were present at sale and legal (MOT passed). The second expert report, from a firm found reliable in previous cases, concluded the damage itself could not have been present at time of sale. The ombudsman evaluated both expert reports critically rather than simply counting them, and found them sufficiently persuasive that no underlying defect existed at the time of sale.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website