Not upheld: failure to investigate and recover payment; alleged fraud; chargeback claim complaint against Remitly U.K Ltd

Decision detail

Summary

Mr S paid approximately £499 via Remitly to reserve a foreign property, with funds sent via mobile money to a mobile wallet. After payment, a dispute arose over property terms, the other party stopped responding, and the promised refund was not received. Mr S complained that Remitly should have investigated potential fraud and attempted recovery, and that a chargeback should have been raised. The ombudsman found insufficient evidence of fraud, determined that Remitly's terms precluded refunds after transaction completion, and noted that chargeback decisions rested with the card issuer. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found insufficient evidence to establish fraud, as there was no convincing evidence that the other parties intended to defraud Mr S without providing any service. While there may have been a dispute over the rental agreement terms, this does not constitute fraud. Even if fraud had been established, recovery would have been highly unlikely given the international nature of the transfer via mobile money and the time elapsed before reporting. The decision to pursue a chargeback rested with the card issuer (T), not Remitly. Remitly's terms explicitly state no refunds are available once a transaction is completed.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website