Upheld: chargeback claim handling / refund claim mishandling complaint against Monzo Bank Limited

Decision detail

Summary

H paid £537.90 via Monzo debit card for flights to a destination with a connecting flight in May 2025. Both onward flights were cancelled and H was returned home instead of reaching the intended destination. H raised a chargeback claim which Monzo declined, arguing that H had accepted alternative flights. The ombudsman upheld the complaint, finding that the overall service contracted for was not fulfilled and the chargeback had reasonable prospect of success. Monzo was ordered to refund £446.46 (83% of the cost) plus 8% simple interest, as the initial outbound flight was considered used but the remaining journey was not provided.

The Ombudsman's reasoning

The ombudsman rejected Monzo's argument that individual flight segments or acceptance of re-routing demonstrated service fulfillment. The relevant question was whether H received the overall service paid for: return travel to the intended destination. Since H did not reach the intended destination and no suitable alternative was offered, the primary service was not provided. The return to point of departure was a consequence of service failure, not a substitute benefit. Aviation regulations support this interpretation. Therefore, the chargeback claim had reasonable prospect of success.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website