Partially upheld: unsatisfactory quality of goods / breach of Consumer Rights Act 2015 complaint against Oodle Financial Services Limited trading as Oodle Car Finance

Decision detail

Summary

Mr A purchased a used car via hire purchase agreement with Oodle in January 2024 for £8,695. The car broke down twice in May 2025, and an independent expert inspection in July 2025 confirmed significant mechanical deterioration consistent with a latent manufacturing defect present at the time of supply. Oodle agreed to unwind the agreement and refunded over £2,500 in monthly payments less fair usage charges, plus £350 for distress and inconvenience. Mr A complained that this did not go far enough, seeking full refund of payments and reimbursement of car hire costs and other consequential losses. The ombudsman partially upheld the complaint, finding Oodle's refund for loss of use was fair but directing reimbursement of the £195 independent expert report cost as a consequential loss, plus 8% interest.

The Ombudsman's reasoning

The ombudsman found the car was not of satisfactory quality at the time of supply based on the expert report showing significant mechanical deterioration consistent with internal wear of timing chain, valve train and oil control systems. While Oodle's acceptance of rejection and refund methodology (over £2,500) was reasonable and more favourable than what the ombudsman would have awarded for loss of use, the cost of the independent expert report (£195) constitutes a consequential loss that should be reimbursed separately, as Mr A was required to obtain this report to prove the car's unsatisfactory quality.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website