Financial Ombudsman decisions on lease return charges
We have read 23 published Financial Ombudsman Service decisions on end of lease damage charges. 6 were upheld, 6 partly upheld and 11 not upheld. Charges were removed where the photographs did not prove the damage, and stood where they did.
Last reviewed . Every figure links to its source.
What the decisions show
- Evidence decides it. Most charges the ombudsman removed in this set went because the photograph did not clearly show damage beyond the limit. Others went because the mark was inside the limit, the customer proved a service had been done, or the fault was there when the car was supplied.
- Bills shrink before the ombudsman. In case after case the company cut the bill at the complaint stage: £1,727 to £931, £1,240 to £965, £880 to £430, £705 to £615.
- Some arguments never work. No loss, low mileage, an MOT pass and a friendly collection driver have not removed a charge in any of these decisions.
See which arguments work and which fail for the detail.
How this digest is compiled
The Financial Ombudsman Service publishes its ombudsmen's final decisions. We read decisions about end of contract charges on hired and financed vehicles and summarise each in our own words. The date shown is the deadline the customer was given to accept the decision, because that is the only date the published text states. This is a reading list, not a statistical sample, and each case turned on its own facts. It is updated monthly.
The decisions, newest first
Arval
Not upheldArval UK Limited. Car hire agreement. Decision DRN-6280295. The customer had until 8 May 2026 to accept it.
- The bill
- £399.67 for scuffed wheels and a missing key.
- What was decided
- The inspection showed wheel scuffing beyond the 50mm limit. The key charge matched the manufacturer's price for a replacement, and the ombudsman said Arval could charge it even though it never replaced the key.
- What it shows
- Arguing that the company suffered no loss, or that the BVRLA guide is not law, did not work. The ombudsman also said Arval did not have to pause collection while the complaint was open.
ALD Automotive
UpheldALD Automotive Limited. Car contract hire. Decision DRN-6223826. The customer had until 14 April 2026 to accept it.
- The bill
- An invoice that included £660 for door-shut damage on three doors and a pillar scratch.
- What was decided
- The ombudsman found the photographs did not clearly show the four items and told ALD to take £660 off the invoice, with 8% simple interest if it had been paid. The other charges stood.
- What it shows
- Charges fell where the photos failed to prove them. Arguments about showroom condition, low mileage and unrepaired damage did not succeed.
MINI Financial Services
Partly upheldBMW Financial Services (GB) Limited, trading as MINI Financial Services. Hire purchase, ended by voluntary termination. Decision DRN-6218638. The customer had until 10 April 2026 to accept it.
- The bill
- £240 for three alloy wheels at £80 each, cut to £160 by the firm.
- What was decided
- One wheel had a scratch running across two spokes, so that £80 stood. The rear wheel photos were dusty and had no ruler, and the ombudsman was not satisfied the scuffs passed 50mm. The bill was cut to £80.
- What it shows
- No scale in the photo meant no charge. BMW was also told to waive collection fees and remove any adverse credit entry linked to the damage charges.
Novuna Vehicle Solutions
Not upheldMitsubishi HC Capital UK PLC, trading as Novuna Vehicle Solutions. Car hire agreement. Decision DRN-6074117. The customer had until 5 March 2026 to accept it.
- The bill
- £407.98 for two cut tyres, four alloy wheels and a scratched bumper.
- What was decided
- The tyres had cuts, the wheels had spoke and rim damage, and the bumper scratches were outside the 25mm rule. All charges stood.
- What it shows
- Passing an MOT, returning the car under its mileage allowance and the car being sold unrepaired made no difference.
Volvo Car Financial Services
UpheldSantander Consumer (UK) plc, trading as Volvo Car Financial Services. Car hire agreement. Decision DRN-6122650. The customer had until 3 March 2026 to accept it.
- The bill
- Damage charges the firm had already reduced to £198, plus an excess mileage charge.
- What was decided
- The complaint was mainly about how the return was handled. The ombudsman left the damage and mileage charges in place and ordered £200 compensation for the service the customer received.
- What it shows
- Compensation for poor handling is a separate question from whether the charges are fair. You can win one without the other.
Lex Autolease
Not upheldLex Autolease Ltd. Van contract hire. Decision DRN-5995588. The customer had until 14 January 2026 to accept it.
- The bill
- A torn floor covering in the driver's footwell.
- What was decided
- The customer said the factory matting was poor and had worn through under work boots. The ombudsman found a hole in the floor covering goes beyond fair wear and tear and saw no evidence the original was defective.
- What it shows
- Holes and tears inside the vehicle are treated as damage however they happened.
Volvo Car
UpheldVolvo Car UK Limited. Car hire agreement, 36 months. Decision DRN-5984117. The customer had until 29 December 2025 to accept it.
- The bill
- £1,240, cut by the firm to £965 after it waived a door, a bumper gouge and a valet.
- What was decided
- The ombudsman removed a £65 front alloy wheel charge because the evidence did not support it. The remaining £900 stood, including charges for poor repairs.
- What it shows
- Two rounds of reductions: £275 from the firm on complaint, then £65 from the ombudsman.
LeasePlan
Partly upheldLeasePlan UK Limited. Car agreement paid by monthly rentals. Decision DRN-5975214. The customer had until 23 December 2025 to accept it.
- The bill
- £220 for two dents, plus £43.75 extended rental.
- What was decided
- One dent was over the size limit and the other crossed a swage line, so the £220 stood. The £43.75 late-return charge did not match the dates in the contract and had to be waived.
- What it shows
- Check the extras as well as the damage lines. A charge for keeping the car past its end date has to match the contract dates.
Arval
Not upheldArval UK Limited. Car agreement on an extended lease. Decision DRN-5896019. The customer had until 5 December 2025 to accept it.
- The bill
- £918 for scratches to a bumper, three doors and the tailgate, and a bumper dent.
- What was decided
- The scratches were longer than 25mm, some down to primer, and the dent was slightly over 15mm. All charges stood.
- What it shows
- Driving well under the mileage allowance did not reduce the damage charges, and Arval did not have to show it repaired the car.
Volkswagen Financial Services
Partly upheldVolkswagen Financial Services (UK) Limited. Car contract hire, 48 months. Decision DRN-5860940. The customer had until 18 November 2025 to accept it.
- The bill
- £240 for alloy wheels, plus compressor lead and tyre sealant charges the firm dropped.
- What was decided
- One rear wheel's scuffing was within fair wear and tear, so that charge had to be refunded. The other wheels were over the 50mm limit and their charges stood, leaving £180.
- What it shows
- Wheels are judged one at a time. A bill for several can be right for some and wrong for one.
Santander Consumer Contract Hire
Not upheldSantander Consumer (UK) plc, trading as Santander Consumer Contract Hire. Car contract hire. Decision DRN-5794559. The customer had until 21 October 2025 to accept it.
- The bill
- About £1,020 after a £150 wear and tear allowance, mostly £160 a panel for poor paint repairs.
- What was decided
- The firm had already removed a £50 valet charge and a £100 service history charge. The ombudsman found the remaining paint defects were poor repairs, which the standard treats as chargeable.
- What it shows
- Paint flaws found with striped reflection boards counted, even though the customer said they were invisible to a layperson.
ALPHERA Financial Services
Not upheldBMW Financial Services (GB) Limited, trading as ALPHERA Financial Services. Hire purchase. Decision DRN-5735204. The customer had until 17 October 2025 to accept it.
- The bill
- £570 for five scratched panels, cut by the firm to £410 after it halved two door charges.
- What was decided
- Each scratch was beyond the BVRLA limits, so the reduced charges stood: £45 for each bumper, £80 for each door and £160 for a quarter panel.
- What it shows
- Arguments about low mileage and the car's overall condition failed because the agreement gave no discount for them.
Volkswagen Financial Services
Not upheldVolkswagen Financial Services (UK) Limited. Car hire agreement. Decision DRN-5714458. The customer had until 25 September 2025 to accept it.
- The bill
- £880, cut by the firm to £430 for a bumper, a door, a sill and an alloy wheel.
- What was decided
- The customer said the collection agent told him the car was fine and that he signed a blank box. The photographs showed damage outside the limits, and the ombudsman said the firm, not the agent, makes the final decision.
- What it shows
- What the driver says at collection does not bind the company. The bill had already halved at the complaint stage.
Leasys
Partly upheldLeasys UK Ltd. Car hire agreement, 2019 to 2024. Decision DRN-5495134. The customer had until 8 September 2025 to accept it.
- The bill
- 23 charges, including £600 for three missed services and £367.96 for a scratched rear screen.
- What was decided
- The ombudsman went through every line. One £65 charge for wheel spoke damage was unfair because the photo did not show it. The rest stood, and Leasys had to honour its earlier £281 reduction.
- What it shows
- Missing service stamps were charged at £200 a service. The one line that fell was the one the photograph did not prove.
LeasePlan
Not upheldLeasePlan UK Limited. Car hire agreement, ended early. Decision DRN-5588300. The customer had until 21 August 2025 to accept it.
- The bill
- £705, cut by the firm to £615 after it removed two charges with unclear photos.
- What was decided
- The remaining charges covered three wheels at £80, a cracked tyre at £105, scratches over 25mm and paint chips over 3mm. The ombudsman found them fair.
- What it shows
- A ruler in the photo helps but is not required. The agent saying everything was within tolerance did not decide it.
PSA Finance UK
Not upheldStellantis Financial Services UK Limited, trading as PSA Finance UK. Car hire agreement. Decision DRN-5679986. The customer had until 6 August 2025 to accept it.
- The bill
- £195 for alloy wheels the customer had already paid to have repaired.
- What was decided
- The inspection photos showed uneven rims and paint bleeding over the edge. The repairer offered no transferable warranty, which the standard requires for repairs done before return.
- What it shows
- A cheap repair without a warranty can be charged again. Low mileage was treated as a separate matter.
Skoda Financial Services
Not upheldVolkswagen Financial Services (UK) Limited, trading as Skoda Financial Services. Car hire agreement, 48 months. Decision DRN-5371089. The customer had until 23 July 2025 to accept it.
- The bill
- £1,727.24 across 11 items, cut by the firm to £931.24 on review.
- What was decided
- The dispute that reached the ombudsman was £875.89 for a rear bumper with a hole in it. Cracks and holes are outside the standard, so the charge stood.
- What it shows
- The firm dropped most of the bill when challenged. A bumper replacement was still allowed for a small hole, and the firm did not have to carry out the repair.
Volvo Car
UpheldVolvo Car UK Limited. Car hire agreement. Decision DRN-5446648. The customer had until 5 May 2025 to accept it.
- The bill
- £9,605.05 for end of lease damage.
- What was decided
- Volvo removed most of the charges because its inspection evidence did not support them. The ombudsman let the four alloy wheel charges stand and ordered a refund of anything paid above them with 8% interest, £150 compensation on top of £50 already offered, and a corrected credit file.
- What it shows
- A very large bill collapsed once the evidence was tested. The wheel charges survived even without a ruler, because the scuffs plainly ran across several spokes.
ALD Automotive
Not upheldALD Automotive Limited. Car hire agreement, extended. Decision DRN-5231884. The customer had until 17 March 2025 to accept it.
- The bill
- £1,213.69, reduced by the firm to £1,090.78.
- What was decided
- The charges covered two alloy wheels at £233.69 and £100, a missing spare key at £175, and scratches and panel damage at £120 to £155 a line. The ombudsman found each was beyond fair wear and tear.
- What it shows
- Wheel charges are not always £60 to £80. A missing spare key cost £175 here.
Alphabet
UpheldAlphabet (GB) Ltd. Car hire agreement. Decision DRN-4605998. The customer had until 14 May 2024 to accept it.
- The bill
- Alloy wheel charges, one already halved by the firm as goodwill.
- What was decided
- The ombudsman said the company must be able to show clearly that damage is outside fair wear and tear. The photos of the right-hand front wheel did not, so that charge had to be removed.
- What it shows
- The burden is on the company to prove each line with a clear photograph.
Read the decision (PDF) This entry is based on extracts of the decision.
Alphabet
Partly upheldAlphabet (GB) Ltd. Car hire agreement. Decision DRN-4430513. The customer had until 5 December 2023 to accept it.
- The bill
- Six damaged areas, including £368.97 for tears in the driver's seat.
- What was decided
- The ombudsman found the seat tears probably came from a defect present when the car was supplied and ordered the £368.97 refunded with 8% interest. Four other charges totalling £400 stood. Alphabet also had to remove negative credit file entries for five months.
- What it shows
- A fault that was there from the start is not damage you caused, even if it shows up years later.
Novuna Vehicle Solutions
UpheldMitsubishi HC Capital UK PLC, trading as Novuna Vehicle Solutions. Car hire agreement, 36 months. Decision DRN-3728815. The customer had until 8 December 2022 to accept it.
- The bill
- £305 across five lines at £60 or £65 each.
- What was decided
- A £65 alloy wheel charge was removed because the scuff was within the guidance and there was no corrosion. Dents with broken paint, a dent on a swage line and a scratch down to primer all stood, leaving £240.
- What it shows
- Even on a small bill, one line in five was wrong.
PSA Finance
Partly upheldPSA Finance UK Limited. Car hire agreement, three years. Decision DRN-3501206. The customer had until 25 June 2022 to accept it.
- The bill
- Damage charges plus £600 for three missed services.
- What was decided
- The service charges went: two services had been done and the firm dropped the third. Six damage charges stood, including £315.18 for the windscreen, and the bill was set at £739.18.
- What it shows
- Proof that a service was done removes the charge. An email saying the case was closed did not cancel the rest.
Quick answers
- How often does the Financial Ombudsman uphold lease return charge complaints?
- In the 23 decisions in this digest, 12 were upheld in full or in part. The service does not publish a figure for this type of complaint alone.
- Where can I read Financial Ombudsman decisions?
- The Financial Ombudsman Service publishes ombudsmen's final decisions on its website. Each entry in this digest links to the original.