Upheld: Service failures generally complaint against MONEYBARN NO.1 LIMITED trading as Moneybarn

Decision detail

Summary

Mr C complained that Moneybarn unfairly charged him £914.02 as a loss of value charge following voluntary termination of his conditional sale agreement for a used car. Moneybarn claimed the charge was justified due to damage exceeding fair wear and tear standards and calculated it according to BVRLA guidance. The ombudsman upheld the complaint, finding that Moneybarn failed to provide evidence of the car's condition when originally supplied, lacked detailed inspection records or photographs, and applied new car standards to a used car that was already seven years old with 60,000 miles when acquired. The ombudsman ordered Moneybarn to remove the £914.02 charge, refund any overpayments with interest, and pay £200 compensation for distress and inconvenience.

The Ombudsman's reasoning

The ombudsman found that Moneybarn failed to demonstrate that Mr C returned the car in a condition outside of fair wear and tear. Critically, Moneybarn provided no evidence of the car's condition when originally supplied, making it impossible to establish that any damage occurred during Mr C's ownership rather than pre-existing. The car condition report lacked detailed inspection records or photographs, and the mechanical issues listed were generic and non-specific. Additionally, the BVRLA standards referenced by Moneybarn are designed for new cars, not used cars of this age and mileage, and Moneybarn failed to adjust expectations accordingly. Without persuasive evidence of damage beyond fair wear and tear, the £914.02 charge was unreasonable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website