What success can look like

The Ombudsman’s decision in Mr M’s complaint against RCI Financial Services Limited trading as Nissan Financial Services (DRN-3677562) shows how remedies are tailored when a fault is accepted but rejection wasn’t actioned at the time.

Mr M took a new Nissan in November 2019 under hire purchase (£24,255 over 49 months with 48 payments of £324.98 and a final payment of £11,378.40). Shortly after supply he discovered a broken suspension and was told the car wasn’t safe to drive. The manufacturer offered a replacement on 5 December 2019 and a courtesy car was provided. Repairs to the original car were completed in December 2020, but Mr M didn’t collect it and the dealer later bought it back with RCI’s permission.

The Ombudsman upheld the complaint. To reflect that Mr M had effectively exercised the short‑term right to reject in December 2019, the remedy focused on refunding the deposit with statutory interest and correcting his credit file — but not refunding monthly payments given the prolonged availability of a courtesy car and a repaired vehicle.

Key outcomes

• Complaint upheld; treat the agreement as rejected for remedy purposes.

• Refund the deposit Mr M paid and add 8% simple yearly interest from payment to settlement.

• Do not refund monthly payments or hire‑car costs given the circumstances.

• Remove any adverse information relating to this agreement from Mr M’s credit file.

• HMRC: provide a tax deduction certificate if interest tax is withheld, on request.

This case highlights that even where rejection isn’t carried through at the time, the Ombudsman may direct a deposit refund with 8% interest and credit file correction — while declining refunds of instalments where a courtesy car and repair were available.

Introduction: When Is Rejection the Right Option?

Many Nissan owners enjoy years of reliable motoring, but some face repeated faults soon after purchase. If you're dealing with persistent problems, you may be considering whether you can reject the car. This guide explains your rights and the steps to take.

Step 1: Know Your Rights – Consumer Rights Act 2015 and Warranty

Under the Consumer Rights Act 2015, goods must be of satisfactory quality, fit for purpose, and as described.

• Within 30 days: the short-term right to reject and receive a full refund.

• After 30 days: the right to a repair or replacement; if unsuccessful or faults recur, the right to a final remedy (price reduction or rejection).

Manufacturer warranty typically runs alongside your statutory rights (terms vary by model and year). Warranty exclusions commonly include wear and tear, neglect, unauthorised modifications, and consequential loss.

Step 2: Identify and Document Faults

Common categories:

• Electrical/software (warnings, infotainment glitches, battery/charging issues)

• Mechanical (engine/gearbox/drivetrain, cooling, suspension, emissions/AdBlue where applicable)

• Body/interior (water ingress, rattles, fit/finish)

Brand-specific examples from FOS decisions:

• Broken suspension identified shortly after supply; vehicle deemed unsafe to drive (DRN-3677562).

• Replacement vehicle offered and lengthy repair period; courtesy car provided during delays (DRN-3677562).

Action: keep a dated log, photos/videos, diagnostic/repair reports, and all correspondence with the retailer and finance company.

Step 3: Communicate Clearly – Template Letter

Subject: Request for Vehicle Rejection/Replacement – [Your Vehicle Model, Registration Number]

Dear [Dealer Principal's Name],

I am writing regarding my [Nissan Model], purchased from [Retailer Name] on [Date]. Since delivery, I have experienced repeated faults including [list main issues, e.g. electrical failures, drivetrain faults, water ingress]. These have not been resolved despite multiple repair attempts.

Under the Consumer Rights Act 2015, I am entitled to a vehicle that is of satisfactory quality, fit for purpose, and as described. As the faults are persistent and have not been rectified, I am requesting [a replacement vehicle/a full refund]. Please confirm the process for returning my vehicle and arranging [a replacement/refund].

I have attached a log of faults, photos, and copies of correspondence. I look forward to your response within 14 days.

Yours sincerely,
[Your Name]
[Contact Details]

Step 4: Dealer, Manufacturer, and Finance Company – Who to Contact

• If bought on PCP/HP, the finance company is often the legal owner; involve them early.

• Your contract is with the retailer; keep them in the loop and escalate if needed.

• If ignored, escalate to the manufacturer’s customer relations.

Step 5: What to Expect – Refunds, Replacements, and Mileage Deductions

• Within 30 days: generally a full refund when rejection is valid.

• After 30 days: repair/replacement or partial refund (businesses may deduct for fair use/mileage; negotiable where faults are severe or the car was unusable).

• Where decisions unwind finance agreements, typical remedies include refunding sums paid and applying 8% simple interest on refunds (per FOS discretion).

Step 6: Overcoming Obstacles

If progress stalls, escalate in writing, reference evidence and your statutory rights, and set clear timelines. Persistence matters.

Step 7: Negotiation Tips

• Use your fault log and evidence to demonstrate inconvenience and repeat failures.

• Ask for mileage deductions to be waived if the car was unusable.

• If a replacement is offered, scrutinise the finance terms.

  
  

Major Nissan Retailers (UK)

• Lookers Nissan

• West Way Nissan

• Glyn Hopkin Nissan

• Stoneacre Nissan

• Arnold Clark Nissan

• Hendy Nissan

• Macklin Motors Nissan

Common Nissan Models (UK)

• Micra

• Juke

• Qashqai

• X‑Trail

• Leaf

• Ariya
  
  

Conclusion: Stay Persistent and Informed

You don't have to accept a car that isn't right. With clear evidence and knowledge of your rights, you can achieve a fair outcome. Keep thorough records and escalate in writing.

Disclaimer: This article provides general information for educational purposes only. It is not legal advice. Outcomes can vary based on your personal circumstances.