Upheld: Goods and services under S75 complaint against MI Vehicle Finance Ltd
Financial Ombudsman decision DRN-6472156 of 2026-07-03T00:00:00+00:00. Goods and services under S75 complaint against MI Vehicle Finance Ltd. Outcome: Upheld.
Decision detail
| Reference | DRN-6472156 |
|---|---|
| Decision date | 2026-07-03T00:00:00+00:00 |
| Firm | MI Vehicle Finance Ltd |
| Product | Motor finance (PCP / HP) |
| Claim type | Goods and services under S75 |
| Outcome | Upheld |
| Remedy | MI Vehicle Finance Ltd must: (1) Remove adverse credit file entries relating to the seven month repair period; (2) Reduce arrears balance by £2,207.31; (3) Pay £2,262.69 for hire costs; (4) Pay simple interest on hire costs at Bank of England base rate + 1% from date of each payment to settlement; (5) Pay £350 compensation for distress and inconvenience. Settlement within 28 days, with additional interest on compensation if delayed. |
Summary
Mr S complained that a car supplied under a hire purchase agreement with MI Vehicle Finance Ltd was of unsatisfactory quality. The vehicle was unusable for seven months during repairs, during which time Mr S incurred hire costs for alternative transport and arrears accumulated on the account. The ombudsman upheld the complaint and ordered the firm to remove adverse credit entries, reduce the arrears balance by £2,207.31, reimburse hire costs of £2,262.69 with interest, and pay £350 compensation for distress and inconvenience. The firm's request to apply all redress to outstanding arrears was rejected as unfair.
The Ombudsman's reasoning
The ombudsman upheld the complaint on the basis that the car was of unsatisfactory quality. The ombudsman rejected the firm's request to apply all redress to outstanding arrears, determining instead that the reduction in arrears should reflect only the period of non-use, while hire costs should be reimbursed directly to Mr S as compensation for expenditure he personally incurred, and distress and inconvenience compensation should be paid separately.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| MI Vehicle Finance Ltd, all decisions | 110 | 45% |
| 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