Upheld: Goods and services under S75 complaint against Santander Consumer (UK) Plc trading as Santander Consumer Finance

Decision detail

Summary

Mr P purchased a used car on finance from SCF in November 2024 for approximately £9,900. A leak was identified before delivery and the dealer claimed to have repaired it, but the fault persisted with wet rear seats on delivery. Despite multiple repair attempts over 14 months, the leak remained unresolved, leaving the car partly unusable and causing Mr P significant inconvenience and worry about long-term damage and resale value. SCF paid £532.80 for impaired use but Mr P sought further redress. The ombudsman upheld the complaint, finding the car was not of satisfactory quality and Mr P was entitled to reject it. SCF was directed to end the agreement, collect the car at no cost, refund the £2,000 deposit, refund 5% of monthly payments with 8% interest, and pay £300 compensation.

The Ombudsman's reasoning

The car did not conform to the implied term of satisfactory quality under the Consumer Rights Act 2015. Although the car was five years old with 38,900 miles and some wear and tear was expected, it still needed to be of satisfactory quality when supplied. The leak constituted either a breach of an express term (if Mr P was aware before taking delivery and agreed to repair) or evidence of unsatisfactory quality (if he was unaware). Repair attempts were not completed within a reasonable time and the car still does not conform to the contract. Therefore, Mr P is entitled to reject the car outside the first 30 days. The refund of 5% of monthly payments reflects impaired use, and £300 compensation is appropriate for the inconvenience and worry caused by the unresolved defect over 14 months.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website