Not upheld: Section 75 Consumer Credit Act dispute handling and settlement fairness complaint against Barclays Bank UK Plc trading as Barclaycard

Decision detail

Summary

Mr R purchased a used car in June 2022, paying £250 by Barclaycard credit card and £26,100 by debit card. The car developed recurring mechanical faults which the dealership failed to resolve. Mr R raised a Section 75 CCA dispute with Barclaycard in late 2024. After requesting evidence and making two rejected offers, Barclaycard offered £7,117.68 in full and final settlement in September 2025, which Mr R accepted and received in October 2025. Mr R subsequently complained to the FOS, claiming he felt pressured into accepting the offer and that it was insufficient. The ombudsman found the complaint not upheld, determining that Mr R accepted the settlement offer with full knowledge of his rights, was not unreasonably pressured, and that Barclaycard's handling of the dispute was fair and reasonable.

The Ombudsman's reasoning

The ombudsman found that Mr R accepted a full and final settlement offer which he had signed and returned, demonstrating clear acceptance. The ombudsman was satisfied that Barclaycard made clear the offer would resolve the claim fully and finally. The ombudsman noted that Mr R had rejected two earlier offers, showing he was aware he could decline offers, and that he had already contacted the FOS before the final offer, indicating awareness of his rights to escalate further. The ombudsman found no evidence of unreasonable pressure. Regarding the evidence requests and time taken, the ombudsman considered it reasonable for Barclaycard to require proof of faults and losses. The ombudsman also confirmed that a chargeback was not available due to card scheme time limits.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website