Upheld: goods not of satisfactory quality / lack of durability complaint against RCI Financial Services Limited trading as Mobilize Financial Services

Decision detail

Summary

Mr B purchased a three-year-old used car through a hire purchase agreement with RCI in November 2022. In July 2025, after approximately 39,636 miles, the car suffered complete engine failure requiring replacement at a cost of around £8,500. RCI argued there was no evidence of a manufacturing defect and that the mechanical failure alone did not establish the car was defective at point of sale. The ombudsman upheld Mr B's complaint, finding the car lacked reasonable durability and was therefore not of satisfactory quality when supplied. RCI was directed to reimburse repair costs (£8,924.78), refund monthly rentals for the period without use (12 July to 4 October 2025), pay 8% interest, and pay £300 compensation for distress and inconvenience.

The Ombudsman's reasoning

The ombudsman applied the Consumer Rights Act 2015, which requires goods to be of satisfactory quality. Quality includes durability, and a reasonable person would assess this considering the car's age, mileage, and history. Although no latent defect was proven at point of sale, the car's failure to remain durable for less than 40,000 miles and 2.5 years indicated it was not of satisfactory quality when supplied. The manufacturer's goodwill gesture and the unsuccessful initial repairs further supported this conclusion. The ombudsman rejected RCI's argument that a mechanical failure alone does not establish inherent defect, finding instead that the car lacked reasonable durability.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website