Not upheld: direct debit setup process complexity and missed payment complaint against American Express Services Europe Limited

Decision detail

Summary

Mr R complained that AMEX's direct debit setup process was overly complex, leading to a missed payment and adverse credit file marker after he cancelled his original direct debit in March 2025. AMEX provided clear written guidance on 28 March 2025 outlining four different routes to set up a new direct debit, including via live chat, and advised Mr R to make manual payments in the interim. Despite multiple contacts with AMEX in April and May 2025 confirming no direct debit was active, Mr R did not arrange a new one until August 2025. The ombudsman found AMEX had not acted unfairly, as it provided clear communications and the simpler process Mr R later discovered was available from the start via the live chat option.

The Ombudsman's reasoning

The ombudsman found that AMEX provided clear communications about the need for manual payments and explicitly offered multiple methods to set up a direct debit, including via live chat. The evidence showed that Mr R was advised on multiple occasions that no direct debit was active and that he needed to make manual payments. Since Mr R delayed setting up a new direct debit for approximately five months despite clear guidance and available options, AMEX was not responsible for the consequences of the missed payment. The ombudsman noted that the simpler process Mr R believed was available in August was actually offered from the start via the live chat option mentioned in the 28 March letter.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website