Not upheld: unauthorized transactions / disputed transactions complaint against American Express Services Europe Limited

Decision detail

Summary

Mr I complained that American Express refused to refund approximately £6,000 in transactions completed by a builder (M) using Mr I's credit card without authorization. Mr I claimed he was coerced into providing the card and PIN, and that since the purchases were not for his benefit, American Express should refund him. However, the ombudsman found that contemporaneous messages between Mr I and M demonstrated Mr I explicitly consented to M acquiring possession of the card and using it for the building project. Under the Consumer Credit Act 1974 section 84(2), American Express can hold Mr I liable for transactions completed with his consent. The complaint was not upheld.

The Ombudsman's reasoning

Under section 84(2) of the Consumer Credit Act 1974, American Express can hold Mr I liable for loss from use of his credit card by a person who acquired possession of it with his consent. The messages between Mr I and M clearly demonstrate that M acquired possession of the card with Mr I's explicit consent. Mr I's claim of coercion is not supported by the contemporaneous messages, which show willing cooperation. The CCA does not require that transactions be for the debtor's benefit to establish liability when possession was obtained with consent.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website