Upheld: Goods and services under S75 complaint against Blue Motor Finance Limited
Financial Ombudsman decision DRN-6470979 of 2026-07-06T00:00:00+00:00. Goods and services under S75 complaint against Blue Motor Finance Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6470979 |
|---|---|
| Decision date | 2026-07-06T00:00:00+00:00 |
| Firm | Blue Motor Finance Limited |
| Product | Motor finance (PCP / HP) |
| Claim type | Goods and services under S75 |
| Outcome | Upheld |
| Remedy | Pay Miss E a further £200 (total compensation £300). Pay 8% simple yearly interest on all refunded amounts including deposit and all payments made from date of payment until date of settlement. |
Summary
Miss E purchased a used car through hire purchase with BMFL on 2 April 2025, but it developed significant faults within hours. After repairs failed, she exercised her right to reject the vehicle in May 2025. However, BMFL did not collect the car until October and did not refund her deposit until December, leaving her legally responsible for the vehicle during this period despite the dealership's acceptance of rejection. An independent inspection confirmed the glow plug system fault was present at sale. BMFL refunded all payments and paid £100 compensation, but the ombudsman found the delays caused sufficient distress to warrant an additional £200 compensation (total £300) plus 8% interest on all refunded amounts.
The Ombudsman's reasoning
The ombudsman was satisfied from the independent inspection report that the glow plug system fault was present or developing at the point of sale, meaning the car was not of satisfactory quality. BMFL's refund of all payments and deposit was appropriate given Miss E had very little use of the vehicle. However, the significant delays in collecting the vehicle (until October) and refunding the deposit (until December) after BMFL accepted responsibility in May/July caused distress and inconvenience. While the ombudsman sympathized with Miss E's loss of driving confidence and the impact of her pregnancy, these were not factors for which BMFL could fairly be held responsible. An award of £300 total compensation, plus 8% interest on refunded amounts, was deemed fair and reasonable to reflect the delays and their impact.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Blue Motor Finance Limited, all decisions | 453 | 52% |
| 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