Upheld: Goods and services under S75 complaint against BMW Financial Services (GB) Limited
Financial Ombudsman decision DRN-6424928 of 2026-06-19T00:00:00+00:00. Goods and services under S75 complaint against BMW Financial Services (GB) Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6424928 |
|---|---|
| Decision date | 2026-06-19T00:00:00+00:00 |
| Firm | BMW Financial Services (GB) Limited |
| Product | Motor finance (PCP / HP) |
| Claim type | Goods and services under S75 |
| Outcome | Upheld |
| Remedy | End finance agreement without liability for future rentals; take car back without collection charge; refund deposit of £2,250; refund one monthly repayment (£465.98) if not already done; pay 8% simple yearly interest on all refunded amounts from date of payment to settlement; pay £400 total compensation (£275 additional to £125 already paid); remove adverse credit file information relating to agreement |
Summary
Mr T purchased a new car via hire purchase with BMWFS in October 2024 for £36,772.13. Within months, the vehicle developed multiple recurring issues including seat creaking, HUD problems, and various noises, requiring numerous warranty repairs. BMWFS partially upheld his complaint but refused rejection. The ombudsman found the car was not of satisfactory quality due to lack of durability and recurring defects, entitling Mr T to reject it. BMWFS was ordered to end the finance agreement, take back the car, refund the deposit and one monthly payment with interest, and pay £400 compensation.
The Ombudsman's reasoning
A new vehicle at this price point should be free of defects and reasonably durable. The car experienced multiple recurring issues within months of purchase, particularly with the seat and HUD, indicating faults were present at point of supply or the car lacked reasonable durability. Although BMWFS was entitled to one repair attempt, the recurring nature of issues across different components meant the car as a whole was not fit for purpose. The customer had fair use of the vehicle despite problems, so a one-month refund was appropriate rather than a full refund of payments. Compensation of £400 total was fair given the inconvenience, though the ombudsman was sympathetic to the customer's circumstances.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| BMW Financial Services (GB) Limited, all decisions | 1,463 | 46% |
| Goods and services under S75, all decisions | 19,872 | 36% |
| Motor finance (PCP / HP), all decisions | 19,840 | 38% |
Source
Read the original decision on the Financial Ombudsman Service website