Not upheld: service failure, misleading information, fee disputes, refund delays complaint against GVS Prepaid Limited

Decision detail

Summary

Mr B purchased over 400 gift cards from GVS Prepaid Limited and sought to combine and redeem them. After GVS provided incorrect information and delayed a redemption in August 2025, it waived all fees as a goodwill gesture. Mr B then requested that GVS waive all fees on future combination and redemption transactions. GVS declined but offered to waive the £5.00 combination fee while charging the £7.50 redemption fee per card as outlined in the terms and conditions. The Ombudsman found this offer fair and reasonable, rejecting Mr B's argument that the August fee waiver created a precedent for future waivers, and noting that Mr B was using the gift cards in a manner inconsistent with their design.

The Ombudsman's reasoning

The Ombudsman found that while GVS made a goodwill gesture in August by waiving all fees, this did not create a binding precedent for future transactions. The offer to waive the £5.00 combination fee while charging the £7.50 redemption fee (as stated in the terms and conditions) is reasonable. The Ombudsman noted that gift cards are not routinely redeemed for cash and Mr B was using the cards in a manner inconsistent with their design by purchasing over 400 cards. The £7.50 redemption fee was clearly disclosed in the terms and conditions, which Mr B would have reasonably known about when purchasing the cards.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website