Not upheld: declined chargeback and Section 75 CCA claim for subscription charge complaint against American Express Services Europe Limited (AESEL)

Decision detail

Summary

Mr B paid £0.99 for a 30-day promotional trial of online courses but was automatically charged £277.43 for an annual subscription after the trial ended. He requested refunds from both the merchant and AESEL, and asked AESEL to raise a chargeback and Section 75 CCA claim. AESEL declined both requests, concluding there was no misrepresentation or breach of contract. The ombudsman upheld AESEL's decision, finding that the merchant's promotional material and terms clearly stated the automatic enrollment and charging terms, and that Mr B could cancel anytime during the trial period. The ombudsman concluded there was no misrepresentation or breach of contract, and AESEL acted fairly in declining both claims.

The Ombudsman's reasoning

The ombudsman found that the merchant's promotional material and terms clearly stated that after the 30-day trial period, Mr B would be automatically enrolled and charged the annual subscription fee, and that he could cancel anytime during the trial. The confirmation email explicitly warned of the automatic charge and stated a reminder would be sent 7 days before trial end. Although Mr B claims he did not receive some reminder emails, the 30-day trial period was short enough that Mr B would likely remember his subscription, and the promotional material made the charging terms sufficiently clear. Therefore, there was no misrepresentation or breach of contract by the merchant, and AESEL acted fairly in declining both the chargeback and Section 75 CCA claim.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website