Not upheld: Goods and services under S75 complaint against Close Brothers Limited

Decision detail

Summary

Mr M purchased a 12-year-old used car with 67,212 miles through a conditional sale agreement with Close Brothers Limited in September 2024 for £6,995. Within three months, the vehicle developed faults and failed its MOT. CBL upheld the complaint, arranged repairs in June 2025, and provided compensation. However, Mr M reported ongoing issues, and a second inspection in October 2025 identified significant engine misfire and brake faults. CBL refused to uphold the complaint, arguing the new faults resulted from lack of use rather than failed repairs. The ombudsman did not uphold the complaint, finding that the initial faults were properly repaired (evidenced by the subsequent MOT pass) and that the later faults, identified months after repairs when the vehicle had not been driven, were reasonably attributable to lack of use and in-service wear and tear rather than inherent defects or repair failure.

The Ombudsman's reasoning

The ombudsman applied the Consumer Rights Act 2015, which requires goods to be of satisfactory quality, fit for purpose, and as described. While acknowledging the vehicle was not of satisfactory quality at supply and was properly repaired in June 2025 (evidenced by subsequent MOT pass with no relevant advisories), the ombudsman found that the faults identified in October 2025 were distinct from the original issues. The ombudsman placed significant weight on the independent inspection engineer's conclusions that the later faults were likely due to lack of use and in-service wear and tear, particularly given the vehicle remained unused between August and October 2025 (mileage unchanged at 69,611) yet developed seven serious fault codes. The ombudsman rejected the time-stamped video as unreliable evidence of a persistent ABS fault, noting it showed only a flashing traction control light without expert commentary or vehicle identification. The ombudsman concluded that for a 12-year-old vehicle with 67,000 miles purchased at £6,995, some maintenance and component failure within a short period was reasonably foreseeable, and CBL had fulfilled its obligation to repair under the CRA.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website