Upheld: Goods and services under S75 complaint against Volkswagen Financial Services (UK) Limited
Financial Ombudsman decision DRN-6468823 of 2026-07-02T00:00:00+00:00. Goods and services under S75 complaint against Volkswagen Financial Services (UK) Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6468823 |
|---|---|
| Decision date | 2026-07-02T00:00:00+00:00 |
| Firm | Volkswagen Financial Services (UK) Limited |
| Product | Motor finance (PCP / HP) |
| Claim type | Goods and services under S75 |
| Outcome | Upheld |
| Remedy | End the agreement with no further monthly repayments; collect the car at no cost to Mr S; refund deposit in full including part-exchange value and advance payments with 8% simple interest from date of payment; refund monthly payments for repair periods on pro rata basis with 8% simple interest; reimburse motor insurance cancellation/transfer admin fees with reasonable proof; ensure no negative credit file entries; pay £200 compensation for trouble and upset (less any £1,200 previously offered) |
Summary
Mr S purchased a brand-new car through a finance agreement with VWFS in November 2023. Within four months, the car developed engine misfire and other faults requiring roadside assistance and repair. After repair, the same faults reappeared along with additional issues. VWFS refused to allow rejection, citing the supplying dealership's closure and offering £1,200 compensation instead. The ombudsman upheld Mr S's complaint, finding that a brand-new car should be fault-free for a considerable period, and that VWFS failed to prove the defects were not present at supply. The ombudsman ordered VWFS to accept rejection, refund the deposit and repair-period repayments with interest, and pay £200 compensation.
The Ombudsman's reasoning
The ombudsman found that a brand-new car should be free from defects for a considerable period. The car presented with faults within four months of supply, and these faults reappeared after the first repair attempt, as evidenced by two roadside assistance reports. Under the Consumer Rights Act, when defects appear within six months, the onus is on the supplier to prove they were not present at point of supply. VWFS failed to do this and instead asked Mr S to provide an independent report, which was inappropriate. Having had one repair opportunity that failed, rejection was the appropriate remedy. The fact that the supplying dealership closed down does not relieve VWFS of responsibility as the finance provider.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Volkswagen Financial Services (UK) Limited, all decisions | 1,782 | 31% |
| Goods and services under S75, all decisions | 19,913 | 36% |
| Motor finance (PCP / HP), all decisions | 19,529 | 38% |
Source
Read the original decision on the Financial Ombudsman Service website