Not upheld: Section 75 claim handling; breach of contract (goods not of satisfactory quality) complaint against MBNA Limited

Decision detail

Summary

Mr S purchased a kitchen for £8,460.68 on his MBNA credit card, but received doors in incorrect sizes, damaged replacements, and final doors in the wrong colour that could no longer be supplied in the agreed tone. After D declined to fully resolve the issue, Mr S made a Section 75 claim with MBNA, who offered a 20% price reduction or a quote review option. Mr S sought a full refund, but the ombudsman found MBNA's 20% price reduction offer to be fair and reasonable given the kitchen remained operational, and that full rejection would be disproportionate. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that goods supplied were likely not of satisfactory quality in breach of the Consumer Rights Act 2015 implied term. Under the CRA, Mr S had the right to request repair, replacement, price reduction, or rejection. After failed repair/replacement attempts, a 20% price reduction was deemed the fairest solution given the kitchen remained operational and functional, the colour difference was subtle rather than jarring, and the kitchen had been in use. The ombudsman found it would be disproportionate to allow full rejection and refund. MBNA's request for an independent report was unnecessary given existing evidence, but the £100 compensation for poor claim handling was fair.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website